Hillcrest Energy Technologies Ltd (HEAT.CN) WACC Analysis

As of May 24, 2025, Hillcrest Energy Technologies Ltd (HEAT.CN) carries a Weighted Average Cost of Capital (WACC) of 9.1%. WACC reflects the blended rate Hillcrest Energy Technologies Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 8.9%, the cost of debt is 5.0%, and the effective tax rate is 25.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 1.13 – 1.23
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.22

What It Means for Investors

With a selected WACC of 9.1%, Hillcrest Energy Technologies Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.