D3 EnergyDNRGF 14 WACC % is 10.39% as of Jun. 24, 2026, which is 2% above its 10-year median of 10.23. GuruFocus rates DNRGF with a GF Score™ of 14/100. The stock has 1 warning sign investors should review. Among 1,036 Oil & Gas companies, D3 Energy ranks worse than 80.98% on this metric.
As of today (2026-06-24), D3 Energy's weighted average cost of capital is 10.39%%. D3 Energy's ROIC % is -114.92% (calculated using TTM income statement data).
D3 Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
D3 Energy (OTCPK:DNRGF) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, D3 Energy's weighted average cost of capital is 10.39%%. D3 Energy's ROIC % is -114.92% (calculated using TTM income statement data).
D3 Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
D3 Energy WACC % Historical Data
* Premium members only.
The historical data trend for D3 Energy's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas E&P subindustry, D3 Energy's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
D3 Energy WACC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, D3 Energy's WACC % distribution charts can be found below:
* The bar in red indicates where D3 Energy's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, D3 Energy's market capitalization (E) is $29.625 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, D3 Energy's latest one-year semi-annual average Book Value of Debt (D) is $0.076 Mil.
a) weight of equity = E / (E + D) = 29.625 / (29.625 + 0.076) = 0.9974
b) weight of debt = D / (E + D) = 0.076 / (29.625 + 0.076) = 0.0026
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.398%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. D3 Energy's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.398% + 1 * 6% = 10.398%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, D3 Energy's interest expense (positive number) was $0.007 Mil. Its total Book Value of Debt (D) is $0.076 Mil.
Cost of Debt = 0.007 / 0.076 = 9.2105%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / -3.464 = 0%.
D3 Energy's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9974
*
10.398%
+
0.0026
*
9.2105%
*
(1 - 0%)
=
10.39%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
D3 Energy (DNRGF) has a WACC % of 10.39% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on D3 Energy and its competitors. This is near median its historical median of 10.23. Over the past decade, D3 Energy's WACC % has ranged from 10.21 to 10.98. According to the industry distribution chart, D3 Energy ranks #839 out of 1036 companies in the Oil & Gas industry, placing it in the top 81%.
Is D3 Energy's WACC % too high?
D3 Energy's current WACC % of 10.39% is near median its 10-year median of 10.23. Over the past 10 years, this metric has ranged from a low of 10.21 to a high of 10.98. The Oil & Gas industry median WACC % is 7.42. D3 Energy's value of 10.39% is 40.1% above this industry median. Based on the distribution chart, D3 Energy ranks #839 out of 1036 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, D3 Energy has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does D3 Energy's WACC % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, D3 Energy ranks #839 out of 1036 companies for WACC %. This places D3 Energy in the lower half of its industry. The industry median WACC % is 7.42. D3 Energy's value of 10.39% is 40.1% above this benchmark. Historically, D3 Energy's own WACC % has ranged from 10.21 to 10.98 over the past decade. While the company's 10-year median is 10.23 vs. the industry median of 7.42, D3 Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Oil & Gas company?
The median WACC % among Oil & Gas companies is 7.42, based on 1,036 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. D3 Energy's current WACC % of 10.39% is 40.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on D3 Energy and its competitors. For the Oil & Gas industry, the median WACC % is 7.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D3 Energy's current WACC % is 10.39%, which is near median its own 10-year median of 10.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is D3 Energy stock overvalued right now?
D3 Energy (DNRGF) has a current WACC % of 10.39%. The current WACC % is 10.39%, which is near median its 10-year median of 10.23 and 40.1% above the Oil & Gas industry median of 7.42. D3 Energy's overall GF Score™ is 14/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For D3 Energy (DNRGF), the current WACC % is 10.39% as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
D3 Energy Ltd is an emerging natural gas and helium exploration company. Its primary focus is on the exploration for, and where possible, the commercial production of natural gas and helium at the D3 project. D3 Project is located in the Free State Province, onshore South Africa which consists of Exploration Right, ER315 (ER315).
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