HQI
Hirequest Inc
Price:  
10.01 
USD
Volume:  
3,369.00
United States | Professional Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

HQI WACC - Weighted Average Cost of Capital

The WACC of Hirequest Inc (HQI) is 7.2%.

The Cost of Equity of Hirequest Inc (HQI) is 7.30%.
The Cost of Debt of Hirequest Inc (HQI) is 4.60%.

Range Selected
Cost of equity 6.50% - 8.10% 7.30%
Tax rate 9.40% - 12.80% 11.10%
Cost of debt 4.60% - 4.60% 4.60%
WACC 6.4% - 7.9% 7.2%
WACC

HQI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.57 0.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 8.10%
Tax rate 9.40% 12.80%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.60% 4.60%
After-tax WACC 6.4% 7.9%
Selected WACC 7.2%

HQI'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 HQI:

cost_of_equity (7.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.57) + 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.