DLG.DE WACC - Weighted Average Cost of Capital
The WACC of Dialog Semiconductor PLC (DLG.DE) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.9% | 7.7% |
| Tax rate | 19.6% - 24.1% | 21.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.4% - 8.8% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 1.5% | 2.0% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.17 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.9% |
| Tax rate | 19.6% | 24.1% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.4% | 8.8% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DLG.DE | Dialog Semiconductor PLC | 0.01 | 1.37 | 1.36 |
| CML.L | CML Microsystems Plc | 0.02 | 0.01 | 0.01 |
| ELG.DE | Elmos Semiconductor SE | 0.09 | 1.49 | 1.39 |
| KMK.L | Kromek Group PLC | 0.33 | 0.3 | 0.24 |
| MELE.BR | Melexis NV | 0.09 | 1.56 | 1.45 |
| MLS.WA | ML System SA | 1.13 | 1.23 | 0.65 |
| SIS.DE | First Sensor AG | 0.01 | -0.11 | -0.11 |
| SOI.PA | Soitec SA | 0.39 | 1.31 | 1 |
| UBXN.SW | U Blox Holding AG | 0.04 | 1.15 | 1.11 |
| XFAB.PA | X Fab Silicon Foundries EV | 0.54 | 1.77 | 1.24 |
| Low | High | |
| Unlevered beta | 0.86 | 1.16 |
| Relevered beta | 1.25 | 1.33 |
| Adjusted relevered beta | 1.17 | 1.22 |
DLG.DE'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 DLG.DE:
cost_of_equity (7.70%) = risk_free_rate (1.75%) + equity_risk_premium (4.70%) * adjusted_beta (1.17) + 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.