DTY.L WACC - Weighted Average Cost of Capital
The WACC of Dignity PLC (DTY.L) is 6.3%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.0% | 9.8% |
| Tax rate | 19.0% - 24.6% | 21.8% |
| Cost of debt | 5.0% - 7.0% | 6% |
| WACC | 5.5% - 7.1% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.76 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.0% |
| Tax rate | 19.0% | 24.6% |
| Debt/Equity ratio | 2.15 | 2.15 |
| Cost of debt | 5.0% | 7.0% |
| After-tax WACC | 5.5% | 7.1% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DTY.L | Dignity PLC | 2.15 | 0.76 | 0.28 |
| ANX.L | Anexo Group PLC | 1.15 | 0.25 | 0.13 |
| ATVEXA B.ST | Atvexa AB | 2.43 | 0.85 | 0.29 |
| FRAN.L | Franchise Brands PLC | 0.31 | 0.65 | 0.52 |
| LIVI.ST | Liv ihop AB (publ) | 0.59 | -0.2 | -0.14 |
| SRI.MI | Servizi Italia SpA | 1.73 | 0.42 | 0.18 |
| VOLO.ST | Volati AB | 0.31 | 0.06 | 0.05 |
| CSV | Carriage Services Inc | 0.74 | 0.48 | 0.3 |
| PLC.TO | Park Lawn Corp | 0.26 | 0.45 | 0.37 |
| RGS | Regis Corp | 1.76 | 0.77 | 0.32 |
| Low | High | |
| Unlevered beta | 0.24 | 0.29 |
| Relevered beta | 0.64 | 0.79 |
| Adjusted relevered beta | 0.76 | 0.86 |
DTY.L'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 DTY.L:
cost_of_equity (9.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.76) + 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.