Decora SA (DCR.WA) WACC Analysis

As of June 21, 2025, Decora SA (DCR.WA) carries a Weighted Average Cost of Capital (WACC) of 9.1%. WACC reflects the blended rate Decora SA must pay to both equity and debt holders.

Within that, the cost of equity is 8.6%, the cost of debt is 4.7%, and the effective tax rate is 18.6%.

Breakdown of WACC Components

• Long-term bond rate: 5.5% – 6.0%
• Equity market risk premium: 6.3% – 7.3%
• Adjusted beta: 0.48 – 0.55
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.1

What It Means for Investors

With a selected WACC of 9.1%, Decora SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.