DKE.L WACC - Weighted Average Cost of Capital
The WACC of Dukemount Capital PLC (DKE.L) is 5.7%.
| Range | Selected | |
| Cost of equity | 7.7% - 12.2% | 9.95% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 6.4% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.62 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 12.2% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 2.51 | 2.51 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 6.4% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DKE.L | Dukemount Capital PLC | 2.51 | 2.07 | 0.68 |
| CBB.MI | CleanBnB SpA | 0.03 | 0.36 | 0.35 |
| CIA.MI | Compagnia Immobiliare Azionaria SpA | 1.11 | 0.51 | 0.27 |
| EEM.PA | Electricite et Eaux De Madagascar SA | 0.21 | 0.72 | 0.62 |
| INR1L.VS | INVL Baltic Real Estate SUTNTIB | 0.78 | 0.71 | 0.43 |
| SMWN.DE | SM Wirtschaftsberatungs AG | 0.06 | 0.13 | 0.12 |
| SOFT.BR | Softimat SA | 0.06 | -0.18 | -0.18 |
| THAL.L | Thalassa Holdings Ltd | 0.32 | -0.14 | -0.11 |
| VEF1R.RG | VEF AS | 0.3 | -0.81 | -0.65 |
| WSP.L | Wynnstay Properties PLC | 0.68 | 0.03 | 0.02 |
| Low | High | |
| Unlevered beta | 0.08 | 0.3 |
| Relevered beta | 0.43 | 1.04 |
| Adjusted relevered beta | 0.62 | 1.03 |
DKE.L's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for DKE.L:
cost_of_equity (9.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.