DOCN
DigitalOcean Holdings Inc
Price:  
36.89 
USD
Volume:  
1,554,306.00
United States | IT Services
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DigitalOcean WACC - Weighted Average Cost of Capital

The WACC of DigitalOcean Holdings Inc (DOCN) is 8.4%.

The Cost of Equity of DigitalOcean Holdings Inc (DOCN) is 10.25%.
The Cost of Debt of DigitalOcean Holdings Inc (DOCN) is 5.00%.

Range Selected
Cost of equity 8.90% - 11.60% 10.25%
Tax rate 11.00% - 14.70% 12.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.5% - 9.3% 8.4%
WACC

DigitalOcean WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.09 1.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.60%
Tax rate 11.00% 14.70%
Debt/Equity ratio 0.45 0.45
Cost of debt 5.00% 5.00%
After-tax WACC 7.5% 9.3%
Selected WACC 8.4%