DORL.TA WACC - Weighted Average Cost of Capital

The WACC of Doral Group Renewable Energy Resources Ltd (DORL.TA) is 10.0%.

The Cost of Equity of Doral Group Renewable Energy Resources Ltd (DORL.TA) is 11.30%.

The Cost of Debt of Doral Group Renewable Energy Resources Ltd (DORL.TA) is 5.75%.

	Range	Selected
Cost of equity	8.80% - 13.80%	11.30%
Tax rate	12.20% - 12.90%	12.55%
Cost of debt	4.50% - 7.00%	5.75%
WACC	7.8% - 12.1%	10.0%

WACC

DORL.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.65	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	13.80%

Tax rate	12.20%	12.90%
Debt/Equity ratio	0.27	0.27
Cost of debt	4.50%	7.00%

After-tax WACC	7.8%	12.1%


Selected WACC	10.0%

DORL.TA'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 DORL.TA:

cost_of_equity (11.30%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.