HLX
Helix Energy Solutions Group Inc
Price:  
6.47 
USD
Volume:  
498,132
United States | Energy Equipment & Services

HLX WACC - Weighted Average Cost of Capital

The WACC of Helix Energy Solutions Group Inc (HLX) is 8.8%.

The Cost of Equity of Helix Energy Solutions Group Inc (HLX) is 10.25%.
The Cost of Debt of Helix Energy Solutions Group Inc (HLX) is 6%.

RangeSelected
Cost of equity8.9% - 11.6%10.25%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.3% - 6.7%6%
WACC7.7% - 10.0%8.8%
WACC

HLX WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1.11.21
Additional risk adjustments0.0%0.5%
Cost of equity8.9%11.6%
Tax rate26.2%27.0%
Debt/Equity ratio
0.320.32
Cost of debt5.3%6.7%
After-tax WACC7.7%10.0%
Selected WACC8.8%

HLX'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 HLX:

cost_of_equity (10.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.1) + 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.