Question 1

What is Hongli Group Inc. Ordinary Shares's WACC?

Accepted Answer

Hongli Group Inc. Ordinary Shares (HLP) has a Weighted Average Cost of Capital (WACC) of 7.25%. This is calculated using a Cost of Equity of 8.68% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 79.90% in the capital structure.

Question 2

Is Hongli Group Inc. Ordinary Shares's WACC high or low?

Accepted Answer

Hongli Group Inc. Ordinary Shares's WACC of 7.25% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Hongli Group Inc. Ordinary Shares's WACC calculated?

Accepted Answer

Hongli Group Inc. Ordinary Shares's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.68% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 79.90% equity and 20.10% debt.

Hongli Group Inc. Ordinary Shares (HLP) — WACC 分析

WACC 构成

解读

Hongli Group Inc. Ordinary Shares（HLP）WACC：7.25%

WACC计算器

Hongli Group Inc. Ordinary Shares（HLP） WACC 解读

HLP 公司分析

HLP DCF 估值

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