HMU.DE WACC - Weighted Average Cost of Capital
The WACC of HMS Bergbau AG (HMU.DE) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.8% | 6.6% |
| Tax rate | 26.8% - 43.7% | 35.25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.2% - 7.5% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.71 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.8% |
| Tax rate | 26.8% | 43.7% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.2% | 7.5% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HMU.DE | HMS Bergbau AG | 0.12 | -0.02 | -0.02 |
| BOW.WA | Bowim SA | 0.12 | 1.01 | 0.93 |
| ELTON.AT | Elton SA | 0.57 | 0.49 | 0.35 |
| FLO.L | Flowtech Fluidpower PLC | 0.6 | 0.15 | 0.1 |
| GRN.WA | Grodno SA | 0.57 | 0.45 | 0.32 |
| K1R.DE | KROMI Logistik AG | 0.07 | 0.06 | 0.06 |
| KCH.WA | Krakchemia SA | 0.41 | -0.24 | -0.19 |
| KGL.WA | Korporacja KGL SA | 1.33 | -0.18 | -0.09 |
| LTHM.L | James Latham PLC | 0.04 | 0.31 | 0.3 |
| TIM.WA | Tim SA | 0.16 | 0.2 | 0.18 |
| Low | High | |
| Unlevered beta | 0.09 | 0.23 |
| Relevered beta | 0.57 | 0.75 |
| Adjusted relevered beta | 0.71 | 0.83 |
HMU.DE'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 HMU.DE:
cost_of_equity (6.60%) = risk_free_rate (2.25%) + equity_risk_premium (5.20%) * adjusted_beta (0.71) + 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.