HH.CO WACC - Weighted Average Cost of Capital

The WACC of H+H International A/S (HH.CO) is 7.5%.

The Cost of Equity of H+H International A/S (HH.CO) is 9.30%.

The Cost of Debt of H+H International A/S (HH.CO) is 5.00%.

	Range	Selected
Cost of equity	8.00% - 10.60%	9.30%
Tax rate	16.20% - 19.10%	17.65%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.6% - 8.3%	7.5%

WACC

HH.CO WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.03	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	10.60%

Tax rate	16.20%	19.10%
Debt/Equity ratio	0.56	0.56
Cost of debt	5.00%	5.00%

After-tax WACC	6.6%	8.3%


Selected WACC	7.5%

HH.CO'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 HH.CO:

cost_of_equity (9.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (1.03) + 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.