HSC
Harsco Corp
Price:  
9.15 
USD
Volume:  
1,938,650.00
United States | Commercial Services & Supplies
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HSC WACC - Weighted Average Cost of Capital

The WACC of Harsco Corp (HSC) is 9.9%.

The Cost of Equity of Harsco Corp (HSC) is 11.40%.
The Cost of Debt of Harsco Corp (HSC) is 11.00%.

Range Selected
Cost of equity 9.80% - 13.00% 11.40%
Tax rate 14.50% - 17.60% 16.05%
Cost of debt 5.00% - 17.00% 11.00%
WACC 6.2% - 13.7% 9.9%
WACC

HSC WACC calculation

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 9.80% 13.00%
Tax rate 14.50% 17.60%
Debt/Equity ratio 1.86 1.86
Cost of debt 5.00% 17.00%
After-tax WACC 6.2% 13.7%
Selected WACC 9.9%

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.