HRS.WA WACC - Weighted Average Cost of Capital

The WACC of Herkules SA (HRS.WA) is 7.7%.

The Cost of Equity of Herkules SA (HRS.WA) is 10.05%.

The Cost of Debt of Herkules SA (HRS.WA) is 5.65%.

	Range	Selected
Cost of equity	8.00% - 12.10%	10.05%
Tax rate	8.50% - 16.50%	12.50%
Cost of debt	4.90% - 6.40%	5.65%
WACC	6.4% - 9.0%	7.7%

WACC

HRS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.39	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.00%	12.10%

Tax rate	8.50%	16.50%
Debt/Equity ratio	0.84	0.84
Cost of debt	4.90%	6.40%

After-tax WACC	6.4%	9.0%


Selected WACC	7.7%

HRS.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 HRS.WA:

cost_of_equity (10.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.39) + 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.