DSI.DB
Drake and Scull International PJSC
Price:  
0.35 
AED
Volume:  
103,949,280.00
United Arab Emirates | Construction & Engineering
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DSI.DB WACC - Weighted Average Cost of Capital

The WACC of Drake and Scull International PJSC (DSI.DB) is 10.9%.

The Cost of Equity of Drake and Scull International PJSC (DSI.DB) is 11.00%.
The Cost of Debt of Drake and Scull International PJSC (DSI.DB) is 5.25%.

Range Selected
Cost of equity 9.50% - 12.50% 11.00%
Tax rate 0.10% - 0.40% 0.25%
Cost of debt 4.00% - 6.50% 5.25%
WACC 9.4% - 12.4% 10.9%
WACC

DSI.DB WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.62 0.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 12.50%
Tax rate 0.10% 0.40%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 6.50%
After-tax WACC 9.4% 12.4%
Selected WACC 10.9%

DSI.DB'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 DSI.DB:

cost_of_equity (11.00%) = risk_free_rate (6.15%) + equity_risk_premium (6.30%) * adjusted_beta (0.62) + 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.