HCO.PA
High Co SA
Price:  
3.18 
EUR
Volume:  
15,811.00
France | Media
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HCO.PA WACC - Weighted Average Cost of Capital

The WACC of High Co SA (HCO.PA) is 8.0%.

The Cost of Equity of High Co SA (HCO.PA) is 8.90%.
The Cost of Debt of High Co SA (HCO.PA) is 5.00%.

Range Selected
Cost of equity 7.80% - 10.00% 8.90%
Tax rate 27.30% - 31.30% 29.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.1% - 8.9% 8.0%
WACC

HCO.PA WACC calculation

Category Low High
Long-term bond rate 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 0.82 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.00%
Tax rate 27.30% 31.30%
Debt/Equity ratio 0.19 0.19
Cost of debt 5.00% 5.00%
After-tax WACC 7.1% 8.9%
Selected WACC 8.0%

HCO.PA'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 HCO.PA:

cost_of_equity (8.90%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.82) + 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.