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DDC Enterprise Limited (DDC) — WACC Analysis

WACC Breakdown

DDC Enterprise Limited (DDC) has a weighted average cost of capital (WACC) of 20.0%. The cost of equity is 12.6%, derived from a beta of 2.11 and a risk-free rate of 5.2%. The after-tax cost of debt is 47.7%. The capital structure is 64.5% equity and 35.5% debt.

Interpretation

A WACC of 20.0% indicates that the market perceives DDC Enterprise Limited as higher-risk, requiring a greater return to compensate investors.

Investors can compare DDC's WACC of 20.0% against industry peers to gauge its relative financing costs. A beta of 2.11 reflects the stock's volatility relative to the broader market.

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VALUATION

DDC WACC: 20.00% for DDC Enterprise Limited

Current inputs imply a 12.58% cost of equity and a 47.69% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

DDC Enterprise Limited Common Stock (DDC) WACC Results
Weighted Average Cost of Capital
20.00%
Cost of Equity
12.58%
Risk-Free Rate5.22%
Beta2.11
Market Risk Premium4.23%
Cost of Debt
47.69%
Pre-Tax Cost of Debt47.69%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 64.50%($10.86M)
Debt: 35.50%($5.98M)
Equity Component
8.11%
64.50% × 12.58%
Debt Component
16.93%
35.50% × 47.69%

DDC Enterprise Limited (DDC) WACC in context

DDC Enterprise Limited (DDC) currently screens with an estimated WACC of 20.00%. That blends a 12.58% cost of equity, a 47.69% pre-tax cost of debt, and a 64.50% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What DDC WACC implies

A 20.00% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates DDC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.11 and equity accounts for 64.50% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.