Skip to content

Himalaya Shipping Ltd. (HSHP) — WACC Analysis

WACC Breakdown

Himalaya Shipping Ltd. (HSHP) has a weighted average cost of capital (WACC) of 7.2%. The cost of equity is 8.4%, derived from a beta of 0.83 and a risk-free rate of 4.7%. The after-tax cost of debt is 5.9%. The capital structure is 53.3% equity and 46.7% debt.

Interpretation

A WACC of 7.2% suggests that the market views Himalaya Shipping Ltd. as relatively low-risk, with a lower cost of financing.

Investors can compare HSHP's WACC of 7.2% against industry peers to gauge its relative financing costs. A beta of 0.83 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

HSHP WACC: 7.24% for Himalaya Shipping Ltd.

Current inputs imply a 8.42% cost of equity and a 7.46% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Himalaya Shipping Ltd. Common Stock (HSHP) WACC Results
Weighted Average Cost of Capital
7.24%
Cost of Equity
8.42%
Risk-Free Rate4.67%
Beta0.83
Market Risk Premium4.23%
Cost of Debt
5.89%
Pre-Tax Cost of Debt7.46%
Tax Rate21.00%
Tax Shield1.57%
Capital Structure
Equity: 53.32%($787.32M)
Debt: 46.68%($689.20M)
Equity Component
4.49%
53.32% × 8.42%
Debt Component
2.75%
46.68% × 5.89%

Himalaya Shipping Ltd. (HSHP) WACC in context

Himalaya Shipping Ltd. (HSHP) currently screens with an estimated WACC of 7.24%. That blends a 8.42% cost of equity, a 7.46% pre-tax cost of debt, and a 53.32% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What HSHP WACC implies

A 7.24% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates HSHP

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.83 and equity accounts for 53.32% 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.