DLG.L
Direct Line Insurance Group PLC
Price:  
247.00 
GBP
Volume:  
10,649,852.00
United Kingdom | Insurance
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DLG.L WACC - Weighted Average Cost of Capital

The WACC of Direct Line Insurance Group PLC (DLG.L) is 9.4%.

The Cost of Equity of Direct Line Insurance Group PLC (DLG.L) is 10.20%.
The Cost of Debt of Direct Line Insurance Group PLC (DLG.L) is 5.00%.

Range Selected
Cost of equity 8.80% - 11.60% 10.20%
Tax rate 19.20% - 21.00% 20.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.2% - 10.6% 9.4%
WACC

DLG.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.8 0.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.60%
Tax rate 19.20% 21.00%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.00% 5.00%
After-tax WACC 8.2% 10.6%
Selected WACC 9.4%