HRP.WA WACC - Weighted Average Cost of Capital

The WACC of Harper Hygienics SA (HRP.WA) is 5.6%.

The Cost of Equity of Harper Hygienics SA (HRP.WA) is 11.50%.

The Cost of Debt of Harper Hygienics SA (HRP.WA) is 5.20%.

	Range	Selected
Cost of equity	9.60% - 13.40%	11.50%
Tax rate	27.40% - 37.20%	32.30%
Cost of debt	4.00% - 6.40%	5.20%
WACC	4.7% - 6.5%	5.6%

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	0.64	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	13.40%

Tax rate	27.40%	37.20%
Debt/Equity ratio	2.82	2.82
Cost of debt	4.00%	6.40%

After-tax WACC	4.7%	6.5%


Selected WACC	5.6%

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 (11.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.64) + 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.