HEWA
HealthWarehouse.com Inc
Price:  
0.08 
USD
Volume:  
7,310.00
United States | Internet & Direct Marketing Retail
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HEWA WACC - Weighted Average Cost of Capital

The WACC of HealthWarehouse.com Inc (HEWA) is 7.2%.

The Cost of Equity of HealthWarehouse.com Inc (HEWA) is 8.55%.
The Cost of Debt of HealthWarehouse.com Inc (HEWA) is 6.90%.

Range Selected
Cost of equity 7.50% - 9.60% 8.55%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 6.80% - 7.00% 6.90%
WACC 6.5% - 7.9% 7.2%
WACC

HEWA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.79 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 9.60%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.64 0.64
Cost of debt 6.80% 7.00%
After-tax WACC 6.5% 7.9%
Selected WACC 7.2%

HEWA'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 HEWA:

cost_of_equity (8.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.79) + 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.