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DXC Technology Company (DXC) — WACC Analysis

WACC Breakdown

DXC Technology Company (DXC) has a weighted average cost of capital (WACC) of 7.5%. The cost of equity is 9.7%, derived from a beta of 1.17 and a risk-free rate of 5.0%. The after-tax cost of debt is 5.7%. The capital structure is 44.3% equity and 55.7% debt.

Interpretation

A WACC of 7.5% suggests that the market views DXC Technology Company as relatively low-risk, with a lower cost of financing.

Investors can compare DXC's WACC of 7.5% against industry peers to gauge its relative financing costs. A beta of 1.17 reflects the stock's volatility relative to the broader market.

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VALUATION

DXC WACC: 7.47% for DXC Technology Company

Current inputs imply a 9.69% cost of equity and a 7.22% 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

DXC Technology Company Common Stock (DXC) WACC Results
Weighted Average Cost of Capital
7.47%
Cost of Equity
9.69%
Risk-Free Rate4.98%
Beta1.17
Market Risk Premium4.23%
Cost of Debt
5.71%
Pre-Tax Cost of Debt7.22%
Tax Rate21.00%
Tax Shield1.52%
Capital Structure
Equity: 44.31%($2433.43M)
Debt: 55.69%($3059.00M)
Equity Component
4.29%
44.31% × 9.69%
Debt Component
3.18%
55.69% × 5.71%

DXC Technology Company (DXC) WACC in context

DXC Technology Company (DXC) currently screens with an estimated WACC of 7.47%. That blends a 9.69% cost of equity, a 7.22% pre-tax cost of debt, and a 44.31% 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 DXC WACC implies

A 7.47% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates DXC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.17 and equity accounts for 44.31% 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.