HLCL.L
Helical PLC
Price:  
222.50 
GBP
Volume:  
71,877.00
United Kingdom | Real Estate Management & Development
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

HLCL.L WACC - Weighted Average Cost of Capital

The WACC of Helical PLC (HLCL.L) is 9.8%.

The Cost of Equity of Helical PLC (HLCL.L) is 6.85%.
The Cost of Debt of Helical PLC (HLCL.L) is 14.00%.

Range Selected
Cost of equity 6.00% - 7.70% 6.85%
Tax rate 0.10% - 5.10% 2.60%
Cost of debt 4.00% - 24.00% 14.00%
WACC 5.1% - 14.4% 9.8%
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 0.34 0.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 7.70%
Tax rate 0.10% 5.10%
Debt/Equity ratio 0.79 0.79
Cost of debt 4.00% 24.00%
After-tax WACC 5.1% 14.4%
Selected WACC 9.8%

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 (6.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.