HLAN.TA WACC - Weighted Average Cost of Capital

The WACC of Hilan Ltd (HLAN.TA) is 11.6%.

The Cost of Equity of Hilan Ltd (HLAN.TA) is 12.05%.

The Cost of Debt of Hilan Ltd (HLAN.TA) is 4.70%.

	Range	Selected
Cost of equity	10.70% - 13.40%	12.05%
Tax rate	22.60% - 22.60%	22.60%
Cost of debt	4.00% - 5.40%	4.70%
WACC	10.3% - 12.9%	11.6%

WACC

HLAN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.95	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.40%

Tax rate	22.60%	22.60%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	5.40%

After-tax WACC	10.3%	12.9%


Selected WACC	11.6%

HLAN.TA'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 HLAN.TA:

cost_of_equity (12.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.