HRP.WA WACC - Weighted Average Cost of Capital

The WACC of Harper Hygienics SA (HRP.WA) is 5.9%.

The Cost of Equity of Harper Hygienics SA (HRP.WA) is 14.75%.

The Cost of Debt of Harper Hygienics SA (HRP.WA) is 5.50%.

	Range	Selected
Cost of equity	9.40% - 20.10%	14.75%
Tax rate	27.40% - 42.40%	34.90%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.3% - 7.5%	5.9%

WACC

HRP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.62	1.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	20.10%

Tax rate	27.40%	42.40%
Debt/Equity ratio	3.66	3.66
Cost of debt	4.00%	7.00%

After-tax WACC	4.3%	7.5%


Selected WACC	5.9%

HRP.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 HRP.WA:

cost_of_equity (14.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.62) + 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.