DU.DB WACC - Weighted Average Cost of Capital

The WACC of Emirates Integrated Telecommunications Company PJSC (DU.DB) is 10.5%.

The Cost of Equity of Emirates Integrated Telecommunications Company PJSC (DU.DB) is 10.85%.

The Cost of Debt of Emirates Integrated Telecommunications Company PJSC (DU.DB) is 5.25%.

	Range	Selected
Cost of equity	9.70% - 12.00%	10.85%
Tax rate	33.00% - 55.00%	44.00%
Cost of debt	4.00% - 6.50%	5.25%
WACC	9.4% - 11.5%	10.5%

WACC

DU.DB WACC calculation

Category	Low	High

Long-term bond rate	5.9%	6.4%
Equity market risk premium	5.8%	6.8%
Adjusted beta	0.66	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	12.00%

Tax rate	33.00%	55.00%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	6.50%

After-tax WACC	9.4%	11.5%


Selected WACC	10.5%

DU.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 DU.DB:

cost_of_equity (10.85%) = risk_free_rate (6.15%) + equity_risk_premium (6.30%) * adjusted_beta (0.66) + 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.