HAYN
Haynes International Inc
Price:  
60.99 
USD
Volume:  
944,798.00
United States | Metals & Mining
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HAYN WACC - Weighted Average Cost of Capital

The WACC of Haynes International Inc (HAYN) is 7.3%.

The Cost of Equity of Haynes International Inc (HAYN) is 7.35%.
The Cost of Debt of Haynes International Inc (HAYN) is 8.80%.

Range Selected
Cost of equity 6.30% - 8.40% 7.35%
Tax rate 16.80% - 20.10% 18.45%
Cost of debt 4.90% - 12.70% 8.80%
WACC 6.0% - 8.6% 7.3%
WACC

HAYN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.53 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.40%
Tax rate 16.80% 20.10%
Debt/Equity ratio 0.16 0.16
Cost of debt 4.90% 12.70%
After-tax WACC 6.0% 8.6%
Selected WACC 7.3%

HAYN'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 HAYN:

cost_of_equity (7.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.53) + 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.