DRH
Diamondrock Hospitality Co
Price:  
6.97 
USD
Volume:  
2,020,989.00
United States | Equity Real Estate Investment Trusts (REITs)
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

DRH WACC - Weighted Average Cost of Capital

The WACC of Diamondrock Hospitality Co (DRH) is 7.7%.

The Cost of Equity of Diamondrock Hospitality Co (DRH) is 9.05%.
The Cost of Debt of Diamondrock Hospitality Co (DRH) is 6.15%.

Range Selected
Cost of equity 7.90% - 10.20% 9.05%
Tax rate 2.10% - 2.60% 2.35%
Cost of debt 4.80% - 7.50% 6.15%
WACC 6.5% - 8.9% 7.7%
WACC

DRH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.88 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 10.20%
Tax rate 2.10% 2.60%
Debt/Equity ratio 0.77 0.77
Cost of debt 4.80% 7.50%
After-tax WACC 6.5% 8.9%
Selected WACC 7.7%