Diamond S Shipping Inc (DSSI) WACC Analysis

As of May 24, 2025, Diamond S Shipping Inc (DSSI) carries a Weighted Average Cost of Capital (WACC) of 9.8%. WACC reflects the blended rate Diamond S Shipping Inc must pay to both equity and debt holders.

Within that, the cost of equity is 9.3%, the cost of debt is 4.6%, and the effective tax rate is 27.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 1.44 – 1.63
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.78

What It Means for Investors

With a selected WACC of 9.8%, Diamond S Shipping Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.