HTL.V WACC - Weighted Average Cost of Capital

The WACC of Hamilton Thorne Ltd (HTL.V) is 9.6%.

The Cost of Equity of Hamilton Thorne Ltd (HTL.V) is 10.50%.

The Cost of Debt of Hamilton Thorne Ltd (HTL.V) is 4.65%.

	Range	Selected
Cost of equity	8.30% - 12.70%	10.50%
Tax rate	31.20% - 38.90%	35.05%
Cost of debt	4.00% - 5.30%	4.65%
WACC	7.6% - 11.6%	9.6%

WACC

HTL.V WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	5.5%	6.5%
Adjusted beta	0.74	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	12.70%

Tax rate	31.20%	38.90%
Debt/Equity ratio	0.13	0.13
Cost of debt	4.00%	5.30%

After-tax WACC	7.6%	11.6%


Selected WACC	9.6%

HTL.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 HTL.V:

cost_of_equity (10.50%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (0.74) + 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.