DOM.WA
Dom Development SA
Price:  
234.00 
PLN
Volume:  
1,680.00
Poland | Household Durables
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DOM.WA WACC - Weighted Average Cost of Capital

The WACC of Dom Development SA (DOM.WA) is 9.6%.

The Cost of Equity of Dom Development SA (DOM.WA) is 10.25%.
The Cost of Debt of Dom Development SA (DOM.WA) is 5.05%.

Range Selected
Cost of equity 8.90% - 11.60% 10.25%
Tax rate 19.80% - 19.90% 19.85%
Cost of debt 4.00% - 6.10% 5.05%
WACC 8.3% - 10.9% 9.6%
WACC

DOM.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.53 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.60%
Tax rate 19.80% 19.90%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.00% 6.10%
After-tax WACC 8.3% 10.9%
Selected WACC 9.6%

DOM.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 DOM.WA:

cost_of_equity (10.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.53) + 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.