HRO.CN
Hero Innovation Group Inc
Price:  
0.03 
CAD
Volume:  
10,000.00
Canada | N/A
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

HRO.CN WACC - Weighted Average Cost of Capital

The WACC of Hero Innovation Group Inc (HRO.CN) is 39.0%.

The Cost of Equity of Hero Innovation Group Inc (HRO.CN) is 108.90%.
The Cost of Debt of Hero Innovation Group Inc (HRO.CN) is 5.00%.

Range Selected
Cost of equity 99.00% - 118.80% 108.90%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 35.7% - 42.4% 39.0%
WACC

HRO.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 18.8 18.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 99.00% 118.80%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1.98 1.98
Cost of debt 5.00% 5.00%
After-tax WACC 35.7% 42.4%
Selected WACC 39.0%

HRO.CN'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 HRO.CN:

cost_of_equity (108.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (18.8) + 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.