DINO WACC - Weighted Average Cost of Capital

The WACC of HF Sinclair Corp (DINO) is 8.7%.

The Cost of Equity of HF Sinclair Corp (DINO) is 10.20%.

The Cost of Debt of HF Sinclair Corp (DINO) is 6.15%.

	Range	Selected
Cost of equity	9.10% - 11.30%	10.20%
Tax rate	18.60% - 21.40%	20.00%
Cost of debt	5.30% - 7.00%	6.15%
WACC	7.7% - 9.7%	8.7%

WACC

DINO WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.13	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.30%

Tax rate	18.60%	21.40%
Debt/Equity ratio	0.41	0.41
Cost of debt	5.30%	7.00%

After-tax WACC	7.7%	9.7%


Selected WACC	8.7%

DINO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for DINO:

cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.13) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.