DLA
Delta Apparel Inc
Price:  
0.58 
USD
Volume:  
4,540,079.00
United States | Textiles, Apparel & Luxury Goods
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

DLA WACC - Weighted Average Cost of Capital

The WACC of Delta Apparel Inc (DLA) is 6.6%.

The Cost of Equity of Delta Apparel Inc (DLA) is 506.20%.
The Cost of Debt of Delta Apparel Inc (DLA) is 6.40%.

Range Selected
Cost of equity 216.60% - 795.80% 506.20%
Tax rate 20.40% - 22.50% 21.45%
Cost of debt 5.80% - 7.00% 6.40%
WACC 5.3% - 7.9% 6.6%
WACC

DLA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 46.23 141.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 216.60% 795.80%
Tax rate 20.40% 22.50%
Debt/Equity ratio 318.27 318.27
Cost of debt 5.80% 7.00%
After-tax WACC 5.3% 7.9%
Selected WACC 6.6%

DLA'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 DLA:

cost_of_equity (506.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (46.23) + 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.