HSC WACC - Weighted Average Cost of Capital
The WACC of Harsco Corp (HSC) is 9.9%.
| Range | Selected | |
| Cost of equity | 9.8% - 13.0% | 11.4% |
| Tax rate | 14.5% - 17.6% | 16.05% |
| Cost of debt | 5.0% - 17.0% | 11% |
| WACC | 6.2% - 13.7% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 1.12 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 13.0% |
| Tax rate | 14.5% | 17.6% |
| Debt/Equity ratio | 1.86 | 1.86 |
| Cost of debt | 5.0% | 17.0% |
| After-tax WACC | 6.2% | 13.7% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HSC | Harsco Corp | 1.86 | 1.71 | 0.67 |
| CHRA | Charah Solutions Inc | 9.29 | 1.15 | 0.13 |
| CLH | Clean Harbors Inc | 0.24 | 0.93 | 0.77 |
| CVA | Covanta Holding Corp | 0.95 | 1.38 | 0.77 |
| CWST | Casella Waste Systems Inc | 0.15 | 0.32 | 0.28 |
| ECOL | US Ecology Inc | 0.5 | 0.86 | 0.6 |
| HCCI | Heritage-Crystal Clean Inc | 0.12 | 0.31 | 0.28 |
| PESI | Perma-Fix Environmental Services Inc | 0.02 | 1.04 | 1.03 |
| QRHC | Quest Resource Holding Corp | 1.74 | 1.28 | 0.52 |
| USLQ | U S Liquids Inc | 4.53 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.43 | 0.63 |
| Relevered beta | 1.18 | 1.46 |
| Adjusted relevered beta | 1.12 | 1.31 |
HSC'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 HSC:
cost_of_equity (11.40%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (1.12) + 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.