DRSL.TA WACC - Weighted Average Cost of Capital

The WACC of Dorsel BAZ Ltd (DRSL.TA) is 6.9%.

The Cost of Equity of Dorsel BAZ Ltd (DRSL.TA) is 11.10%.

The Cost of Debt of Dorsel BAZ Ltd (DRSL.TA) is 4.95%.

	Range	Selected
Cost of equity	9.40% - 12.80%	11.10%
Tax rate	21.50% - 21.50%	21.50%
Cost of debt	4.00% - 5.90%	4.95%
WACC	5.8% - 8.1%	6.9%

WACC

DRSL.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.74	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	12.80%

Tax rate	21.50%	21.50%
Debt/Equity ratio	1.36	1.36
Cost of debt	4.00%	5.90%

After-tax WACC	5.8%	8.1%


Selected WACC	6.9%

DRSL.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 DRSL.TA:

cost_of_equity (11.10%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.74) + 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.