HPIL WACC - Weighted Average Cost of Capital
The WACC of HPIL Holding (HPIL) is 4.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 10.3% | 7.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.9% - 4.7% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 10.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 5.63 | 5.63 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.9% | 4.7% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HPIL | HPIL Holding | 15.83 | 0 | 0 |
| ELC.V | Elysee Development Corp | 0.18 | 0.48 | 0.43 |
| ESGW.V | ESG Global Impact Capital Inc | 0.06 | 1.02 | 0.98 |
| FRTD | Fortitude Group Inc | 120.25 | 0.02 | 0 |
| GLAE | Glassbridge Enterprises Inc | 5.87 | 0.15 | 0.03 |
| IDEA | Aeon Ventures Inc | 0.3 | -1.14 | -0.93 |
| SCGX | GTEK Industries Inc | 0.01 | -0.4 | -0.4 |
| SUNS | SLR Senior Investment Corp | 1.32 | 0.99 | 0.5 |
| VTNA | Vetanova Inc | 11.61 | 0 | 0 |
| WP.V | Western Pacific Trust Co | 0.23 | 0.88 | 0.76 |
| Low | High | |
| Unlevered beta | 0 | 0.19 |
| Relevered beta | 0 | 0.96 |
| Adjusted relevered beta | 0.33 | 0.97 |
HPIL'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 HPIL:
cost_of_equity (7.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.