HLG.NZ WACC - Weighted Average Cost of Capital
The WACC of Hallenstein Glasson Holdings Ltd (HLG.NZ) is 7.9%.
| Range | Selected | |
| Cost of equity | 7.3% - 9.7% | 8.5% |
| Tax rate | 28.2% - 29.3% | 28.75% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.7% - 9.1% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 4.3% | 4.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.57 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 9.7% |
| Tax rate | 28.2% | 29.3% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.7% | 9.1% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HLG.NZ | Hallenstein Glasson Holdings Ltd | 0.15 | 0.96 | 0.87 |
| 2528.HK | Forward Fashion (International) Holdings Co Ltd | 4.62 | 0.34 | 0.08 |
| 2668.T | Tabio Corp | 0.12 | 0.12 | 0.11 |
| 2778.T | Palemo Holdings Co Ltd | 1.07 | 1.05 | 0.6 |
| 3415.T | Tokyo Base Co Ltd | 0.21 | 0.93 | 0.81 |
| 592.HK | Bossini International Holdings Ltd | 0.49 | 1.31 | 0.97 |
| 5WJ.SI | Moneymax Financial Services Ltd | 2.62 | 0.75 | 0.26 |
| 7603.T | Mac House Co Ltd | 0.12 | 0.4 | 0.37 |
| 8166.T | Taka-Q Co Ltd | 0.75 | 0.75 | 0.49 |
| TRA.NZ | Turners Automotive Group Ltd | 0.77 | 0.22 | 0.14 |
| Low | High | |
| Unlevered beta | 0.33 | 0.53 |
| Relevered beta | 0.36 | 0.58 |
| Adjusted relevered beta | 0.57 | 0.72 |
HLG.NZ'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 HLG.NZ:
cost_of_equity (8.50%) = risk_free_rate (4.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.57) + 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.