Ducommun Inc (DCO) WACC Analysis

As of May 24, 2025, Ducommun Inc (DCO) carries a Weighted Average Cost of Capital (WACC) of 7.9%. WACC reflects the blended rate Ducommun Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.5%, the cost of debt is 5.1%, and the effective tax rate is 11.7%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.79 – 0.91
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.24

What It Means for Investors

With a selected WACC of 7.9%, Ducommun Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.