HL
Hecla Mining Co
Price:  
5.82 
USD
Volume:  
14,030,656.00
United States | Metals & Mining
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HL WACC - Weighted Average Cost of Capital

The WACC of Hecla Mining Co (HL) is 9.4%.

The Cost of Equity of Hecla Mining Co (HL) is 10.15%.
The Cost of Debt of Hecla Mining Co (HL) is 6.35%.

Range Selected
Cost of equity 8.50% - 11.80% 10.15%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.60% - 7.10% 6.35%
WACC 7.9% - 10.9% 9.4%
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 1.01 1.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.80%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.60% 7.10%
After-tax WACC 7.9% 10.9%
Selected WACC 9.4%

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 (10.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.01) + 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.