DVL.WA WACC - Weighted Average Cost of Capital

The WACC of Develia SA (DVL.WA) is 8.7%.

The Cost of Equity of Develia SA (DVL.WA) is 9.70%.

The Cost of Debt of Develia SA (DVL.WA) is 6.55%.

	Range	Selected
Cost of equity	8.80% - 10.60%	9.70%
Tax rate	17.60% - 19.80%	18.70%
Cost of debt	6.40% - 6.70%	6.55%
WACC	8.0% - 9.5%	8.7%

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	0.51	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	10.60%

Tax rate	17.60%	19.80%
Debt/Equity ratio	0.28	0.28
Cost of debt	6.40%	6.70%

After-tax WACC	8.0%	9.5%


Selected WACC	8.7%

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 (9.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.51) + 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.