DSGT WACC - Weighted Average Cost of Capital
The WACC of DSG Global Inc (DSGT) is 4.1%.
| Range | Selected | |
| Cost of equity | 5.3% - 1842.8% | 924.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.0% - 5.2% | 4.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.3 | 328.21 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 1842.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 33614.46 | 33614.46 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.0% | 5.2% |
| Selected WACC | 4.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DSGT | DSG Global Inc | 33614.46 | 0 | 0 |
| BEER.V | Hill Street Beverage Company Inc | 0.22 | 1.58 | 1.36 |
| BMXC | Bemax Inc | 414134.94 | -1.31 | 0 |
| CLOW | Cloudweb Inc | 0.27 | 2.02 | 1.68 |
| DIT | AMCON Distributing Co | 1.97 | 0.32 | 0.13 |
| EDUC | Educational Development Corp | 3.11 | 0.15 | 0.05 |
| GIBX | GIB Capital Group Inc | 98523.34 | -0.42 | 0 |
| TCOR | TreeCon Resources Inc | 1.51 | -0.07 | -0.03 |
| UFMG | Universal Mfg Co | 1.2 | 1.34 | 0.71 |
| Low | High | |
| Unlevered beta | 0.01 | 0.12 |
| Relevered beta | -0.04 | 489.37 |
| Adjusted relevered beta | 0.3 | 328.21 |
DSGT'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 DSGT:
cost_of_equity (924.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.3) + 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.