HEL.WA WACC - Weighted Average Cost of Capital

The WACC of Helio SA (HEL.WA) is 10.3%.

The Cost of Equity of Helio SA (HEL.WA) is 11.35%.

The Cost of Debt of Helio SA (HEL.WA) is 9.60%.

	Range	Selected
Cost of equity	10.10% - 12.60%	11.35%
Tax rate	20.00% - 20.10%	20.05%
Cost of debt	6.10% - 13.10%	9.60%
WACC	8.6% - 12.0%	10.3%

WACC

HEL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.73	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.60%

Tax rate	20.00%	20.10%
Debt/Equity ratio	0.4	0.4
Cost of debt	6.10%	13.10%

After-tax WACC	8.6%	12.0%


Selected WACC	10.3%

HEL.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 HEL.WA:

cost_of_equity (11.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.73) + 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.