HDR.WA WACC - Weighted Average Cost of Capital

The WACC of Przedsiebiorstwo Hydrauliki Silowej Hydrotor SA (HDR.WA) is 10.7%.

The Cost of Equity of Przedsiebiorstwo Hydrauliki Silowej Hydrotor SA (HDR.WA) is 11.15%.

The Cost of Debt of Przedsiebiorstwo Hydrauliki Silowej Hydrotor SA (HDR.WA) is 12.35%.

	Range	Selected
Cost of equity	9.10% - 13.20%	11.15%
Tax rate	17.70% - 19.20%	18.45%
Cost of debt	7.00% - 17.70%	12.35%
WACC	7.8% - 13.6%	10.7%

WACC

HDR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.57	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	13.20%

Tax rate	17.70%	19.20%
Debt/Equity ratio	0.66	0.66
Cost of debt	7.00%	17.70%

After-tax WACC	7.8%	13.6%


Selected WACC	10.7%

HDR.WA'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 HDR.WA:

cost_of_equity (11.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.57) + 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.