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DELEK LOGISTICS PARTNERS, LP (DKL) — WACC Analysis

WACC Breakdown

DELEK LOGISTICS PARTNERS, LP (DKL) has a weighted average cost of capital (WACC) of 7.6%. The cost of equity is 7.9%, derived from a beta of 0.45 and a risk-free rate of 5.2%. The after-tax cost of debt is 7.3%. The capital structure is 57.9% equity and 42.1% debt.

Interpretation

A WACC of 7.6% suggests that the market views DELEK LOGISTICS PARTNERS, LP as relatively low-risk, with a lower cost of financing.

Investors can compare DKL's WACC of 7.6% against industry peers to gauge its relative financing costs. A beta of 0.45 reflects the stock's volatility relative to the broader market.

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VALUATION

DKL WACC: 7.63% for DELEK LOGISTICS PARTNERS, LP

Current inputs imply a 7.90% cost of equity and a 9.19% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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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

DELEK LOGISTICS PARTNERS, LP Common Stock (DKL) WACC Results
Weighted Average Cost of Capital
7.63%
Cost of Equity
7.90%
Risk-Free Rate5.22%
Beta0.45
Market Risk Premium4.23%
Cost of Debt
7.26%
Pre-Tax Cost of Debt9.19%
Tax Rate21.00%
Tax Shield1.93%
Capital Structure
Equity: 57.91%($3264.97M)
Debt: 42.09%($2372.72M)
Equity Component
4.57%
57.91% × 7.90%
Debt Component
3.06%
42.09% × 7.26%

DELEK LOGISTICS PARTNERS, LP (DKL) WACC in context

DELEK LOGISTICS PARTNERS, LP (DKL) currently screens with an estimated WACC of 7.63%. That blends a 7.90% cost of equity, a 9.19% pre-tax cost of debt, and a 57.91% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What DKL WACC implies

A 7.63% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates DKL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.45 and equity accounts for 57.91% 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.