DPP.L
DP Poland PLC
Price:  
9.00 
GBP
Volume:  
137,413.00
United Kingdom | Hotels, Restaurants & Leisure
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DPP.L WACC - Weighted Average Cost of Capital

The WACC of DP Poland PLC (DPP.L) is 6.8%.

The Cost of Equity of DP Poland PLC (DPP.L) is 6.90%.
The Cost of Debt of DP Poland PLC (DPP.L) is 6.35%.

Range Selected
Cost of equity 6.10% - 7.70% 6.90%
Tax rate 0.70% - 1.30% 1.00%
Cost of debt 5.70% - 7.00% 6.35%
WACC 6.1% - 7.6% 6.8%
WACC

DPP.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.36 0.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 7.70%
Tax rate 0.70% 1.30%
Debt/Equity ratio 0.18 0.18
Cost of debt 5.70% 7.00%
After-tax WACC 6.1% 7.6%
Selected WACC 6.8%

DPP.L'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 DPP.L:

cost_of_equity (6.90%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.