HRC.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa HRC SA (HRC.WA) is 7.1%.

The Cost of Equity of Grupa HRC SA (HRC.WA) is 9.70%.

The Cost of Debt of Grupa HRC SA (HRC.WA) is 5.00%.

	Range	Selected
Cost of equity	8.50% - 10.90%	9.70%
Tax rate	10.20% - 13.30%	11.75%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.5% - 7.6%	7.1%

WACC

HRC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.48	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	10.90%

Tax rate	10.20%	13.30%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	6.5%	7.6%


Selected WACC	7.1%

HRC.WA'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 HRC.WA:

cost_of_equity (9.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.48) + 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.