Hillenbrand Inc (HI) WACC Analysis

As of May 23, 2025, Hillenbrand Inc (HI) carries a Weighted Average Cost of Capital (WACC) of 6.9%. WACC reflects the blended rate Hillenbrand Inc must pay to both equity and debt holders.

Within that, the cost of equity is 10.1%, the cost of debt is 4.9%, and the effective tax rate is 44.7%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 1.36 – 1.58
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.24

What It Means for Investors

With a selected WACC of 6.9%, Hillenbrand Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.