HRTH
Harte Hanks Inc
Price:  
6.72 
USD
Volume:  
18,170.00
United States | Media
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HRTH WACC - Weighted Average Cost of Capital

The WACC of Harte Hanks Inc (HRTH) is 7.0%.

The Cost of Equity of Harte Hanks Inc (HRTH) is 9.40%.
The Cost of Debt of Harte Hanks Inc (HRTH) is 4.25%.

Range Selected
Cost of equity 8.20% - 10.60% 9.40%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.2% - 7.8% 7.0%
WACC

HRTH WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.18 1.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.60%
Tax rate 27.00% 27.00%
Debt/Equity ratio 0.61 0.61
Cost of debt 4.00% 4.50%
After-tax WACC 6.2% 7.8%
Selected WACC 7.0%

HRTH'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 HRTH:

cost_of_equity (9.40%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.18) + 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.