HDT.L WACC - Weighted Average Cost of Capital
The WACC of Holders Technology PLC (HDT.L) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.6% - 8.7% | 7.65% |
| Tax rate | 2.7% - 7.4% | 5.05% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.6% - 8.6% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.43 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 8.7% |
| Tax rate | 2.7% | 7.4% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.6% | 8.6% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HDT.L | Holders Technology PLC | 0.06 | 0.16 | 0.15 |
| ALCA.ST | Alcadon Group AB | 0.78 | 0.07 | 0.04 |
| BOREO.HE | Boreo Oyj | 1 | 0.39 | 0.2 |
| CBTT B.ST | Christian Berner Tech Trade AB | 0.3 | 0.93 | 0.72 |
| CPI.AT | CPI SA | 1.03 | 1.75 | 0.88 |
| DESPC.IS | Despec Bilgisayar Pazarlama ve Ticaret AS | 0.58 | 0.81 | 0.52 |
| ELZ.WA | Zaklady Urzadzen Komputerowych Elzab SA | 1.56 | 0.32 | 0.13 |
| ETL.WA | Eurotel SA | 0.27 | -0.08 | -0.06 |
| IQL.DE | iQ International AG | 0.97 | -0.88 | -0.46 |
| S4E.WA | S4E SA | 0.02 | 0.43 | 0.43 |
| Low | High | |
| Unlevered beta | 0.14 | 0.29 |
| Relevered beta | 0.15 | 0.3 |
| Adjusted relevered beta | 0.43 | 0.53 |
HDT.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 HDT.L:
cost_of_equity (7.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.43) + 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.