HL
Hecla Mining Co
Price:  
5.14 
USD
Volume:  
11,704,714.00
United States | Metals & Mining
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HL WACC - Weighted Average Cost of Capital

The WACC of Hecla Mining Co (HL) is 8.9%.

The Cost of Equity of Hecla Mining Co (HL) is 9.60%.
The Cost of Debt of Hecla Mining Co (HL) is 6.35%.

Range Selected
Cost of equity 8.20% - 11.00% 9.60%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.60% - 7.10% 6.35%
WACC 7.6% - 10.1% 8.9%
WACC

HL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.93 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 11.00%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.17 0.17
Cost of debt 5.60% 7.10%
After-tax WACC 7.6% 10.1%
Selected WACC 8.9%

HL'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 HL:

cost_of_equity (9.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.93) + 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.