Digerati TechnologiesDTGI WACC % is 10.26% as of Jun. 30, 2026, which is 51% below its 10-year median of 20.86. The stock has 6 warning signs investors should review. Among 375 Telecommunication Services companies, Digerati Technologies ranks worse than 77.6% on this metric.
As of today (2026-06-30), Digerati Technologies's weighted average cost of capital is 10.26%%. Digerati Technologies's ROIC % is -2.18% (calculated using TTM income statement data).
Digerati Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
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, Digerati Technologies's weighted average cost of capital is 10.26%%. Digerati Technologies's ROIC % is -2.18% (calculated using TTM income statement data).
Digerati Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly 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 quarterly average debt to get the simplified cost of debt.
* 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 Telecom Services subindustry, Digerati Technologies'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.
Digerati Technologies WACC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Digerati Technologies's WACC % distribution charts can be found below:
* The bar in red indicates where Digerati Technologies'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, Digerati Technologies's market capitalization (E) is $3.787 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Oct. 2025, Digerati Technologies's latest one-year quarterly average Book Value of Debt (D) is $26.5517 Mil.
a) weight of equity = E / (E + D) = 3.787 / (3.787 + 26.5517) = 0.1248
b) weight of debt = D / (E + D) = 26.5517 / (3.787 + 26.5517) = 0.8752
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 4.465%. 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. Digerati Technologies's beta is -0.3838.
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 = 4.465% + -0.3838 * 6% = 2.1622%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Oct. 2025, Digerati Technologies's interest expense (positive number) was $3.032 Mil. Its total Book Value of Debt (D) is $26.5517 Mil.
Cost of Debt = 3.032 / 26.5517 = 11.4192%.
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 / 6.0787 = 0%.
Digerati Technologies'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)
=
0.1248
*
2.1622%
+
0.8752
*
11.4192%
*
(1 - 0%)
=
10.26%
* 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.
Digerati Technologies (DTGI) has a WACC % of 10.26% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Digerati Technologies and its competitors. This is 51% below median its historical median of 20.86. Over the past decade, Digerati Technologies' WACC % has ranged from 10.45 to 39.58. According to the industry distribution chart, Digerati Technologies ranks #291 out of 375 companies in the Telecommunication Services industry, placing it in the top 77.6%.
Is Digerati Technologies' WACC % too high?
Digerati Technologies' current WACC % of 10.26% is 51% below median its 10-year median of 20.86. Over the past 10 years, this metric has ranged from a low of 10.45 to a high of 39.58. The Telecommunication Services industry median WACC % is 7.30. Digerati Technologies' value of 10.26% is 40.5% above this industry median. Based on the distribution chart, Digerati Technologies ranks #291 out of 375 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers.
How does Digerati Technologies' WACC % compare to IOTR and KTEL?
According to the Telecommunication Services industry distribution chart, Digerati Technologies ranks #291 out of 375 companies for WACC %. This places Digerati Technologies in the lower half of its industry. The industry median WACC % is 7.30. Digerati Technologies' value of 10.26% is 40.5% above this benchmark. Historically, Digerati Technologies' own WACC % has ranged from 10.45 to 39.58 over the past decade. While the company's 10-year median is 20.86 vs. the industry median of 7.30, Digerati Technologies 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 a Telecommunication Services company?
The median WACC % among Telecommunication Services companies is 7.30, based on 375 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. Digerati Technologies's current WACC % of 10.26% is 40.5% 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 Digerati Technologies and its competitors. For the Telecommunication Services industry, the median WACC % is 7.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digerati Technologies's current WACC % is 10.26%, which is 51% below median its own 10-year median of 20.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digerati Technologies stock overvalued right now?
Based on GuruFocus' analysis, Digerati Technologies (DTGI) is currently considered Possible Value Trap. The stock's GF Value™ is $0.02, compared to a current price of $0.01 — trading 71.5% below its estimated fair value. The current WACC % is 10.26%, which is 51% below median its 10-year median of 20.86 and 40.5% above the Telecommunication Services industry median of 7.30. 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 Digerati Technologies (DTGI), the current WACC % is 10.26% as of Jun. 30, 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.
Digerati Technologies Inc is a provider of cloud services specializing in Unified Communications as a Service (UCaaS) solutions. The company's product portfolio includes Internet-based telephony products and services delivered through its cloud application platform and session-based communication network and network services including internet broadband, fiber, mobile broadband and cloud WAN solutions (SD WAN). Its services provide enterprise-class, carrier-grade services to the small-to-medium-sized business at cost-effective monthly rates. Its UCaaS or cloud communication services include fully hosted IP/PBX, mobile applications, Voice over Internet Protocol transport, SIP trunking, and customized VoIP services all delivered Only in the Cloud.
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