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Herbalife Ltd. (HLF) — WACC Analysis

WACC Breakdown

Herbalife Ltd. (HLF) has a weighted average cost of capital (WACC) of 8.2%. The cost of equity is 9.1%, derived from a beta of 0.97 and a risk-free rate of 5.0%. The after-tax cost of debt is 7.6%. The capital structure is 38.5% equity and 61.5% debt.

Interpretation

A WACC of 8.2% is moderate, reflecting the market's balanced risk assessment of Herbalife Ltd..

Investors can compare HLF's WACC of 8.2% against industry peers to gauge its relative financing costs. A beta of 0.97 reflects the stock's volatility relative to the broader market.

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VALUATION

HLF WACC: 8.16% for Herbalife Ltd.

Current inputs imply a 9.11% cost of equity and a 9.57% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Herbalife Ltd. Common Stock (HLF) WACC Results
Weighted Average Cost of Capital
8.16%
Cost of Equity
9.11%
Risk-Free Rate4.96%
Beta0.97
Market Risk Premium4.23%
Cost of Debt
7.56%
Pre-Tax Cost of Debt9.57%
Tax Rate21.00%
Tax Shield2.01%
Capital Structure
Equity: 38.52%($1262.88M)
Debt: 61.48%($2015.70M)
Equity Component
3.51%
38.52% × 9.11%
Debt Component
4.65%
61.48% × 7.56%

Herbalife Ltd. (HLF) WACC in context

Herbalife Ltd. (HLF) currently screens with an estimated WACC of 8.16%. That blends a 9.11% cost of equity, a 9.57% pre-tax cost of debt, and a 38.52% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What HLF WACC implies

A 8.16% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates HLF

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.97 and equity accounts for 38.52% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

HLF WACC: 8.16% — Herbalife Ltd. Cost of Capital (September 2026) | DeepViews