HNGR
Hanger Inc
Price:  
18.72 
USD
Volume:  
555,889.00
United States | Health Care Providers & Services
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HNGR WACC - Weighted Average Cost of Capital

The WACC of Hanger Inc (HNGR) is 7.5%.

The Cost of Equity of Hanger Inc (HNGR) is 8.60%.
The Cost of Debt of Hanger Inc (HNGR) is 6.45%.

Range Selected
Cost of equity 7.20% - 10.00% 8.60%
Tax rate 7.00% - 9.90% 8.45%
Cost of debt 5.90% - 7.00% 6.45%
WACC 6.5% - 8.4% 7.5%
WACC

HNGR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.73 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 10.00%
Tax rate 7.00% 9.90%
Debt/Equity ratio 0.71 0.71
Cost of debt 5.90% 7.00%
After-tax WACC 6.5% 8.4%
Selected WACC 7.5%

HNGR'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 HNGR:

cost_of_equity (8.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.73) + 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.