DNP.WA WACC - Weighted Average Cost of Capital

The WACC of Dino Polska SA (DNP.WA) is 9.6%.

The Cost of Equity of Dino Polska SA (DNP.WA) is 9.65%.

The Cost of Debt of Dino Polska SA (DNP.WA) is 6.90%.

	Range	Selected
Cost of equity	7.90% - 11.40%	9.65%
Tax rate	18.10% - 18.70%	18.40%
Cost of debt	6.10% - 7.70%	6.90%
WACC	7.8% - 11.3%	9.6%

WACC

DNP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.37	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.40%

Tax rate	18.10%	18.70%
Debt/Equity ratio	0.02	0.02
Cost of debt	6.10%	7.70%

After-tax WACC	7.8%	11.3%


Selected WACC	9.6%

DNP.WA'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 DNP.WA:

cost_of_equity (9.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.37) + 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.