HRL
Hormel Foods Corp
Price:  
35.32 
USD
Volume:  
14,672,089.00
United States | Food Products
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HRL WACC - Weighted Average Cost of Capital

The WACC of Hormel Foods Corp (HRL) is 6.6%.

The Cost of Equity of Hormel Foods Corp (HRL) is 7.20%.
The Cost of Debt of Hormel Foods Corp (HRL) is 4.30%.

Range Selected
Cost of equity 6.30% - 8.10% 7.20%
Tax rate 19.20% - 20.30% 19.75%
Cost of debt 4.00% - 4.60% 4.30%
WACC 5.8% - 7.4% 6.6%
WACC

HRL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.52 0.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.10%
Tax rate 19.20% 20.30%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.00% 4.60%
After-tax WACC 5.8% 7.4%
Selected WACC 6.6%