HAS.L
Hays PLC
Price:  
72.60 
GBP
Volume:  
5,257,679.00
United Kingdom | Professional Services
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HAS.L WACC - Weighted Average Cost of Capital

The WACC of Hays PLC (HAS.L) is 7.4%.

The Cost of Equity of Hays PLC (HAS.L) is 8.30%.
The Cost of Debt of Hays PLC (HAS.L) is 4.30%.

Range Selected
Cost of equity 7.00% - 9.60% 8.30%
Tax rate 29.30% - 36.10% 32.70%
Cost of debt 4.00% - 4.60% 4.30%
WACC 6.3% - 8.4% 7.4%
WACC

HAS.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.51 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.60%
Tax rate 29.30% 36.10%
Debt/Equity ratio 0.21 0.21
Cost of debt 4.00% 4.60%
After-tax WACC 6.3% 8.4%
Selected WACC 7.4%

HAS.L'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 HAS.L:

cost_of_equity (8.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.