RHI
Robert Half International Inc
Price:  
45.33 
USD
Volume:  
941,282.00
United States | Professional Services
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RHI WACC - Weighted Average Cost of Capital

The WACC of Robert Half International Inc (RHI) is 6.5%.

The Cost of Equity of Robert Half International Inc (RHI) is 9.85%.
The Cost of Debt of Robert Half International Inc (RHI) is 4.50%.

Range Selected
Cost of equity 8.50% - 11.20% 9.85%
Tax rate 27.10% - 27.90% 27.50%
Cost of debt 4.50% - 4.50% 4.50%
WACC 5.9% - 7.2% 6.5%
WACC

RHI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.20%
Tax rate 27.10% 27.90%
Debt/Equity ratio 1 1
Cost of debt 4.50% 4.50%
After-tax WACC 5.9% 7.2%
Selected WACC 6.5%

RHI'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 RHI:

cost_of_equity (9.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1) + 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.