HA
Hawaiian Holdings Inc
Price:  
18.00 
USD
Volume:  
12,917,174.00
United States | Airlines
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HA WACC - Weighted Average Cost of Capital

The WACC of Hawaiian Holdings Inc (HA) is 7.1%.

The Cost of Equity of Hawaiian Holdings Inc (HA) is 11.60%.
The Cost of Debt of Hawaiian Holdings Inc (HA) is 5.85%.

Range Selected
Cost of equity 9.60% - 13.60% 11.60%
Tax rate 21.40% - 23.80% 22.60%
Cost of debt 4.70% - 7.00% 5.85%
WACC 5.8% - 8.3% 7.1%
WACC

HA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.24 1.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.60% 13.60%
Tax rate 21.40% 23.80%
Debt/Equity ratio 1.76 1.76
Cost of debt 4.70% 7.00%
After-tax WACC 5.8% 8.3%
Selected WACC 7.1%

HA'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 HA:

cost_of_equity (11.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.24) + 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.