HUR.L
Hurricane Energy PLC
Price:  
7.79 
GBP
Volume:  
15,350,400
United Kingdom | Oil, Gas & Consumable Fuels

HUR.L WACC - Weighted Average Cost of Capital

The WACC of Hurricane Energy PLC (HUR.L) is 10.8%.

The Cost of Equity of Hurricane Energy PLC (HUR.L) is 11.2%.
The Cost of Debt of Hurricane Energy PLC (HUR.L) is 5.5%.

RangeSelected
Cost of equity8.0% - 14.4%11.2%
Tax rate1.0% - 4.7%2.85%
Cost of debt4.6% - 6.4%5.5%
WACC7.7% - 13.8%10.8%
WACC

HUR.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.661.35
Additional risk adjustments0.0%0.5%
Cost of equity8.0%14.4%
Tax rate1.0%4.7%
Debt/Equity ratio
0.080.08
Cost of debt4.6%6.4%
After-tax WACC7.7%13.8%
Selected WACC10.8%

HUR.L'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 HUR.L:

cost_of_equity (11.20%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * 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.