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    • HSI.V
    H-Source Holdings Ltd
    Price:  
    0.1 
    CAD
    Volume:  
    21,090
    Canada | Retail Trade
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    WACC
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    HSI.V WACC - Weighted Average Cost of Capital

    The WACC of H-Source Holdings Ltd (HSI.V) is 7.4%.

    The Cost of Equity of H-Source Holdings Ltd (HSI.V) is 8.3%.
    The Cost of Debt of H-Source Holdings Ltd (HSI.V) is 5%.

    RangeSelected
    Cost of equity6.3% - 10.3%8.3%
    Tax rate27.0% - 27.0%27%
    Cost of debt5.0% - 5.0%5%
    WACC5.8% - 9.0%7.4%
    WACC

    HSI.V WACC calculation

    CategoryLowHigh
    Long-term bond rate3.2%3.7%
    Equity market risk premium4.7%5.7%
    Adjusted beta0.661.06
    Additional risk adjustments0.0%0.5%
    Cost of equity6.3%10.3%
    Tax rate27.0%27.0%
    Debt/Equity ratio
    		0.230.23
    Cost of debt5.0%5.0%
    After-tax WACC5.8%9.0%
    Selected WACC7.4%

    HSI.V'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 HSI.V:

    cost_of_equity (8.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.66) + 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.