Acea SpA
SWB:DCA
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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A
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Acea SpA
SWB:DCA
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IT |
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Transocean Ltd
NYSE:RIG
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CH |
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Mold-Tek Technologies Ltd
NSE:MOLDTECH
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IN |
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Scansource Inc
NASDAQ:SCSC
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US |
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P
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PetroChina Co Ltd
XHAM:PC6
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CN |
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Shake Shack Inc
NYSE:SHAK
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US |
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S
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STINAG Stuttgart Invest AG
XBER:STG
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DE |
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A
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Australian Vanadium Ltd
OTC:ATVVD
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AU |
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Caplin Point Laboratories Ltd
NSE:CAPLIPOINT
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IN |
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L
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Lindbergh SpA
MIL:LDB
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IT |
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L
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Lot78 Inc
OTC:LOTE
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UK |
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Dicker Data Ltd
ASX:DDR
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AU |
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ExpreS2ion Biotech Holding AB
F:5JD0
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SE |
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Amani Gold Ltd
ASX:ANL
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AU |
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M
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Mahindra and Mahindra Ltd
LSE:MHID
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IN |
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Financiere de Tubize SA
XBRU:TUB
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BE |
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V
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Venus Concept Inc
F:0RR1
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CA |
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Eupraxia Pharmaceuticals Inc
NASDAQ:EPRX
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CA |
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J
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Japan Business Systems Inc
TSE:5036
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JP |
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Solo Brands Inc
OTC:SBDS
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US |
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M
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Muenchener Rueckversicherungs Gesellschaft in Muenchen AG
SWB:MUV2
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DE |
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Blackstone Secured Lending Fund
NYSE:BXSL
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US |
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N
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Newcrest Mining Ltd
XBER:NMA
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AU |
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LK Technology Holdings Ltd
F:L5D
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HK |
Discount Rate
DCA Cost of Equity
Discount Rate
DCA's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.7%. The Beta, indicating the stock's volatility relative to the market, is 0.75, while the current Risk-Free Rate, based on government bond yields, is 3.56%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
DCA WACC
Discount Rate
DCA's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. The WACC stands at 6.56%. This includes the cost of equity at 6.7%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 4.34%, reflecting the interest rate on DCA's debt adjusted for tax benefits. The weight of debt in the capital structure is 51.8%.
What is DCA's discount rate?
DCA's current Cost of Equity is 6.7%, while its WACC stands at 6.56%. The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate.
How is Cost of Equity for DCA calculated?
The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).
This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.
Here is how we calculate the cost of equity for
DCA
How is WACC for DCA calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for
DCA
