HAR.JO WACC - Weighted Average Cost of Capital

The WACC of Harmony Gold Mining Company Ltd (HAR.JO) is 21.7%.

The Cost of Equity of Harmony Gold Mining Company Ltd (HAR.JO) is 21.90%.

The Cost of Debt of Harmony Gold Mining Company Ltd (HAR.JO) is 9.60%.

	Range	Selected
Cost of equity	20.40% - 23.40%	21.90%
Tax rate	23.50% - 26.10%	24.80%
Cost of debt	9.50% - 9.70%	9.60%
WACC	20.2% - 23.2%	21.7%

WACC

HAR.JO WACC calculation

Category	Low	High

Long-term bond rate	9.1%	9.6%
Equity market risk premium	9.5%	10.5%
Adjusted beta	1.18	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.40%	23.40%

Tax rate	23.50%	26.10%
Debt/Equity ratio	0.02	0.02
Cost of debt	9.50%	9.70%

After-tax WACC	20.2%	23.2%


Selected WACC	21.7%

HAR.JO'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 HAR.JO:

cost_of_equity (21.90%) = risk_free_rate (9.35%) + equity_risk_premium (10.00%) * adjusted_beta (1.18) + 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.