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Harmonic Inc (HLIT) — WACC Analysis

WACC Breakdown

Harmonic Inc (HLIT) has a weighted average cost of capital (WACC) of 9.2%. The cost of equity is 9.8%, derived from a beta of 1.14 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.7%. The capital structure is 91.1% equity and 8.9% debt.

Interpretation

A WACC of 9.2% is moderate, reflecting the market's balanced risk assessment of Harmonic Inc.

Investors can compare HLIT's WACC of 9.2% against industry peers to gauge its relative financing costs. A beta of 1.14 reflects the stock's volatility relative to the broader market.

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VALUATION

HLIT WACC: 9.20% for Harmonic Inc

Current inputs imply a 9.84% cost of equity and a 3.39% 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

Harmonic Inc Common Stock (HLIT) WACC Results
Weighted Average Cost of Capital
9.20%
Cost of Equity
9.84%
Risk-Free Rate5.22%
Beta1.14
Market Risk Premium4.23%
Cost of Debt
2.68%
Pre-Tax Cost of Debt3.39%
Tax Rate21.00%
Tax Shield0.71%
Capital Structure
Equity: 91.07%($1143.02M)
Debt: 8.93%($112.08M)
Equity Component
8.97%
91.07% × 9.84%
Debt Component
0.24%
8.93% × 2.68%

Harmonic Inc (HLIT) WACC in context

Harmonic Inc (HLIT) currently screens with an estimated WACC of 9.20%. That blends a 9.84% cost of equity, a 3.39% pre-tax cost of debt, and a 91.07% 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 HLIT WACC implies

A 9.20% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates HLIT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.14 and equity accounts for 91.07% 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.