Hello Pal International Inc (HP.CN) WACC Analysis

As of May 27, 2025, Hello Pal International Inc (HP.CN) carries a Weighted Average Cost of Capital (WACC) of 8.4%. WACC reflects the blended rate Hello Pal International Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.2%, the cost of debt is 5.0%, and the effective tax rate is 8.6%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.79 – 0.91
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.01

What It Means for Investors

With a selected WACC of 8.4%, Hello Pal International Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.