HLCL.L
Helical PLC
Price:  
228.00 
GBP
Volume:  
73,098.00
United Kingdom | Real Estate Management & Development
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HLCL.L WACC - Weighted Average Cost of Capital

The WACC of Helical PLC (HLCL.L) is 8.2%.

The Cost of Equity of Helical PLC (HLCL.L) is 7.65%.
The Cost of Debt of Helical PLC (HLCL.L) is 9.90%.

Range Selected
Cost of equity 6.30% - 9.00% 7.65%
Tax rate 6.00% - 11.10% 8.55%
Cost of debt 4.00% - 15.80% 9.90%
WACC 5.1% - 11.3% 8.2%
WACC

HLCL.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.39 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 9.00%
Tax rate 6.00% 11.10%
Debt/Equity ratio 0.86 0.86
Cost of debt 4.00% 15.80%
After-tax WACC 5.1% 11.3%
Selected WACC 8.2%

HLCL.L'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 HLCL.L:

cost_of_equity (7.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.