DUNI.TA WACC - Weighted Average Cost of Capital

The WACC of Duniec Bros Ltd (DUNI.TA) is 8.1%.

The Cost of Equity of Duniec Bros Ltd (DUNI.TA) is 7.90%.

The Cost of Debt of Duniec Bros Ltd (DUNI.TA) is 11.15%.

	Range	Selected
Cost of equity	7.10% - 8.70%	7.90%
Tax rate	20.90% - 21.90%	21.40%
Cost of debt	7.00% - 15.30%	11.15%
WACC	6.7% - 9.5%	8.1%

WACC

DUNI.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.38	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	8.70%

Tax rate	20.90%	21.90%
Debt/Equity ratio	0.33	0.33
Cost of debt	7.00%	15.30%

After-tax WACC	6.7%	9.5%


Selected WACC	8.1%

DUNI.TA'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 DUNI.TA:

cost_of_equity (7.90%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.38) + 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.