DSX
Diana Shipping Inc
Price:  
1.58 
USD
Volume:  
156,464.00
Greece | Marine
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DSX WACC - Weighted Average Cost of Capital

The WACC of Diana Shipping Inc (DSX) is 8.5%.

The Cost of Equity of Diana Shipping Inc (DSX) is 10.55%.
The Cost of Debt of Diana Shipping Inc (DSX) is 10.80%.

Range Selected
Cost of equity 6.90% - 14.20% 10.55%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 6.00% - 15.60% 10.80%
WACC 5.0% - 12.0% 8.5%
WACC

DSX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.67 1.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 14.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 3.51 3.51
Cost of debt 6.00% 15.60%
After-tax WACC 5.0% 12.0%
Selected WACC 8.5%

DSX'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 DSX:

cost_of_equity (10.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.67) + 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.