DNA2.L
Doric Nimrod Air Two Ltd
Price:  
146.00 
GBP
Volume:  
113,267.00
Guernsey | Trading Companies & Distributors
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DNA2.L WACC - Weighted Average Cost of Capital

The WACC of Doric Nimrod Air Two Ltd (DNA2.L) is 10.9%.

The Cost of Equity of Doric Nimrod Air Two Ltd (DNA2.L) is 8.20%.
The Cost of Debt of Doric Nimrod Air Two Ltd (DNA2.L) is 22.10%.

Range Selected
Cost of equity 6.90% - 9.50% 8.20%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 15.80% - 28.40% 22.10%
WACC 8.6% - 13.3% 10.9%
WACC

DNA2.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.48 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.50%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0.4 0.4
Cost of debt 15.80% 28.40%
After-tax WACC 8.6% 13.3%
Selected WACC 10.9%

DNA2.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 DNA2.L:

cost_of_equity (8.20%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.48) + 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.