HAIN WACC - Weighted Average Cost of Capital
The WACC of Hain Celestial Group Inc (HAIN) is 7.1%.
| Range | Selected | |
| Cost of equity | 7.1% - 9.9% | 8.5% |
| Tax rate | 15.4% - 19.8% | 17.6% |
| Cost of debt | 4.3% - 12.4% | 8.35% |
| WACC | 4.3% - 9.9% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.71 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 9.9% |
| Tax rate | 15.4% | 19.8% |
| Debt/Equity ratio | 4.41 | 4.41 |
| Cost of debt | 4.3% | 12.4% |
| After-tax WACC | 4.3% | 9.9% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HAIN | Hain Celestial Group Inc | 4.41 | 0.25 | 0.05 |
| BGS | B&G Foods Inc | 6.02 | -0.3 | -0.05 |
| JJSF | J & J Snack Foods Corp | 0 | 0.18 | 0.18 |
| LANC | Lancaster Colony Corp | 0 | 0.09 | 0.09 |
| LAS.A.TO | Lassonde Industries Inc | 0.32 | 0.68 | 0.54 |
| PBH.TO | Premium Brands Holdings Corp | 0.88 | 0.53 | 0.31 |
| SENEA | Seneca Foods Corp | 0.98 | 0.36 | 0.2 |
| TWNK | Hostess Brands Inc | 0.23 | 0.17 | 0.14 |
| UTZ | UTZ Brands Inc | 0.42 | -0.15 | -0.11 |
| VNM.VN | Vietnam Dairy Products JSC | 0.08 | 0.33 | 0.31 |
| Low | High | |
| Unlevered beta | 0.12 | 0.19 |
| Relevered beta | 0.57 | 0.87 |
| Adjusted relevered beta | 0.71 | 0.91 |
HAIN'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 HAIN:
cost_of_equity (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.71) + 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.