DOM.WA
Dom Development SA
Price:  
234.5 
PLN
Volume:  
608
Poland | Household Durables

DOM.WA WACC - Weighted Average Cost of Capital

The WACC of Dom Development SA (DOM.WA) is 9.5%.

The Cost of Equity of Dom Development SA (DOM.WA) is 10.15%.
The Cost of Debt of Dom Development SA (DOM.WA) is 5.05%.

RangeSelected
Cost of equity8.8% - 11.5%10.15%
Tax rate19.8% - 19.9%19.85%
Cost of debt4.0% - 6.1%5.05%
WACC8.2% - 10.8%9.5%
WACC

DOM.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.5%6.0%
Equity market risk premium6.3%7.3%
Adjusted beta0.530.68
Additional risk adjustments0.0%0.5%
Cost of equity8.8%11.5%
Tax rate19.8%19.9%
Debt/Equity ratio
0.120.12
Cost of debt4.0%6.1%
After-tax WACC8.2%10.8%
Selected WACC9.5%

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 (10.15%) = 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.