HAS
Hasbro Inc
Price:  
67.21 
USD
Volume:  
1,522,585.00
United States | Leisure Products
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Hasbro WACC - Weighted Average Cost of Capital

The WACC of Hasbro Inc (HAS) is 7.4%.

The Cost of Equity of Hasbro Inc (HAS) is 8.75%.
The Cost of Debt of Hasbro Inc (HAS) is 4.60%.

Range Selected
Cost of equity 7.70% - 9.80% 8.75%
Tax rate 19.80% - 21.30% 20.55%
Cost of debt 4.10% - 5.10% 4.60%
WACC 6.5% - 8.3% 7.4%
WACC

Hasbro WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.84 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 9.80%
Tax rate 19.80% 21.30%
Debt/Equity ratio 0.36 0.36
Cost of debt 4.10% 5.10%
After-tax WACC 6.5% 8.3%
Selected WACC 7.4%

Hasbro'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 Hasbro:

cost_of_equity (8.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.84) + 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.