HUMAN.BK WACC - Weighted Average Cost of Capital

The WACC of Humanica PCL (HUMAN.BK) is 9.5%.

The Cost of Equity of Humanica PCL (HUMAN.BK) is 9.65%.

The Cost of Debt of Humanica PCL (HUMAN.BK) is 4.25%.

	Range	Selected
Cost of equity	6.90% - 12.40%	9.65%
Tax rate	13.30% - 14.10%	13.70%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.8% - 12.1%	9.5%

WACC

HUMAN.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.59	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	12.40%

Tax rate	13.30%	14.10%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	4.50%

After-tax WACC	6.8%	12.1%


Selected WACC	9.5%

HUMAN.BK'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 HUMAN.BK:

cost_of_equity (9.65%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.59) + 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.