DV
DoubleVerify Holdings Inc
Price:  
14.13 
USD
Volume:  
4,109,891.00
United States | Software
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

DV WACC - Weighted Average Cost of Capital

The WACC of DoubleVerify Holdings Inc (DV) is 9.5%.

The Cost of Equity of DoubleVerify Holdings Inc (DV) is 9.55%.
The Cost of Debt of DoubleVerify Holdings Inc (DV) is 8.60%.

Range Selected
Cost of equity 8.30% - 10.80% 9.55%
Tax rate 22.40% - 26.10% 24.25%
Cost of debt 4.50% - 12.70% 8.60%
WACC 8.3% - 10.8% 9.5%
WACC

DV WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.97 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 10.80%
Tax rate 22.40% 26.10%
Debt/Equity ratio 0 0
Cost of debt 4.50% 12.70%
After-tax WACC 8.3% 10.8%
Selected WACC 9.5%

DV'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 DV:

cost_of_equity (9.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.97) + 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.