HLIO
Helios Technologies Inc
Price:  
31.34 
USD
Volume:  
490,179.00
United States | Machinery
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HLIO WACC - Weighted Average Cost of Capital

The WACC of Helios Technologies Inc (HLIO) is 8.8%.

The Cost of Equity of Helios Technologies Inc (HLIO) is 10.70%.
The Cost of Debt of Helios Technologies Inc (HLIO) is 5.95%.

Range Selected
Cost of equity 9.40% - 12.00% 10.70%
Tax rate 21.80% - 23.20% 22.50%
Cost of debt 4.90% - 7.00% 5.95%
WACC 7.6% - 9.9% 8.8%
WACC

HLIO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.21 1.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.40% 12.00%
Tax rate 21.80% 23.20%
Debt/Equity ratio 0.48 0.48
Cost of debt 4.90% 7.00%
After-tax WACC 7.6% 9.9%
Selected WACC 8.8%

HLIO'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 HLIO:

cost_of_equity (10.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.21) + 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.