HELE
Helen of Troy Ltd
Price:  
31.26 
USD
Volume:  
398,267.00
Bermuda | Household Durables
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HELE WACC - Weighted Average Cost of Capital

The WACC of Helen of Troy Ltd (HELE) is 7.4%.

The Cost of Equity of Helen of Troy Ltd (HELE) is 11.15%.
The Cost of Debt of Helen of Troy Ltd (HELE) is 5.40%.

Range Selected
Cost of equity 9.20% - 13.10% 11.15%
Tax rate 15.40% - 17.50% 16.45%
Cost of debt 5.30% - 5.50% 5.40%
WACC 6.6% - 8.2% 7.4%
WACC

HELE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.17 1.47
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 13.10%
Tax rate 15.40% 17.50%
Debt/Equity ratio 1.31 1.31
Cost of debt 5.30% 5.50%
After-tax WACC 6.6% 8.2%
Selected WACC 7.4%

HELE'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 HELE:

cost_of_equity (11.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.17) + 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.