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.