DTR.WA WACC - Weighted Average Cost of Capital

The WACC of Digitree Group SA (DTR.WA) is 9.0%.

The Cost of Equity of Digitree Group SA (DTR.WA) is 9.20%.

The Cost of Debt of Digitree Group SA (DTR.WA) is 8.60%.

	Range	Selected
Cost of equity	8.00% - 10.40%	9.20%
Tax rate	20.30% - 23.30%	21.80%
Cost of debt	7.00% - 10.20%	8.60%
WACC	7.8% - 10.3%	9.0%

WACC

DTR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.39	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.40%

Tax rate	20.30%	23.30%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.00%	10.20%

After-tax WACC	7.8%	10.3%


Selected WACC	9.0%

DTR.WA'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 DTR.WA:

cost_of_equity (9.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.39) + 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.