DSKE WACC - Weighted Average Cost of Capital
The WACC of Daseke Inc (DSKE) is 9.3%.
| Range | Selected | |
| Cost of equity | 9.9% - 13.1% | 11.5% |
| Tax rate | 18.9% - 29.5% | 24.2% |
| Cost of debt | 5.9% - 15.6% | 10.75% |
| WACC | 6.7% - 11.8% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.32 | 1.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 13.1% |
| Tax rate | 18.9% | 29.5% |
| Debt/Equity ratio | 1.67 | 1.67 |
| Cost of debt | 5.9% | 15.6% |
| After-tax WACC | 6.7% | 11.8% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DSKE | Daseke Inc | 1.67 | 2.1 | 0.96 |
| HTLD | Heartland Express Inc | 0.29 | 0.85 | 0.7 |
| MTL.TO | Mullen Group Ltd | 0.81 | 0.67 | 0.42 |
| PTSI | PAM Transportation Services Inc | 0.61 | 1.29 | 0.9 |
| RRTS | Roadrunner Transportation Systems Inc | 2.37 | 1.69 | 0.63 |
| SAIA | Saia Inc | 0.03 | 0.89 | 0.88 |
| TTR.V | Titanium Transportation Group Inc | 1.13 | 1.77 | 0.98 |
| ULH | Universal Logistics Holdings Inc | 1.25 | 1.16 | 0.61 |
| USAK | USA Truck Inc | 0.51 | 1.07 | 0.78 |
| USX | US Xpress Enterprises Inc | 1.47 | 1.56 | 0.76 |
| WERN | Werner Enterprises Inc | 0.41 | 0.71 | 0.55 |
| Low | High | |
| Unlevered beta | 0.7 | 0.78 |
| Relevered beta | 1.48 | 1.69 |
| Adjusted relevered beta | 1.32 | 1.46 |
DSKE'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 DSKE:
cost_of_equity (11.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.32) + 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.