DVL.WA WACC - Weighted Average Cost of Capital

The WACC of Develia SA (DVL.WA) is 8.4%.

The Cost of Equity of Develia SA (DVL.WA) is 9.20%.

The Cost of Debt of Develia SA (DVL.WA) is 6.50%.

	Range	Selected
Cost of equity	8.30% - 10.10%	9.20%
Tax rate	17.60% - 19.80%	18.70%
Cost of debt	6.40% - 6.60%	6.50%
WACC	7.7% - 9.2%	8.4%

WACC

DVL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.44	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.10%

Tax rate	17.60%	19.80%
Debt/Equity ratio	0.25	0.25
Cost of debt	6.40%	6.60%

After-tax WACC	7.7%	9.2%


Selected WACC	8.4%

DVL.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 DVL.WA:

cost_of_equity (9.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.44) + 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.