Hyliion HoldingsHYLN -0.69%55 WACC % is 38.37% as of Jul. 07, 2026, which is 218% above its 10-year median of 12.05. GuruFocus rates HYLN with a GF Score™ of 55/100 and a GF Value™ of $4.20 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,343 Vehicles & Parts companies, Hyliion Holdings ranks worse than 99.55% on this metric.
As of today (2026-07-07), Hyliion Holdings's weighted average cost of capital is 38.37%%. Hyliion Holdings's ROIC % is -52.72% (calculated using TTM income statement data).
Hyliion Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Hyliion Holdings (AMEX:HYLN) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Hyliion Holdings's weighted average cost of capital is 38.37%%. Hyliion Holdings's ROIC % is -52.72% (calculated using TTM income statement data).
Hyliion Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Hyliion Holdings WACC % Historical Data
* Premium members only.
The historical data trend for Hyliion Holdings's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Parts subindustry, Hyliion Holdings's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hyliion Holdings WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hyliion Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Hyliion Holdings's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Hyliion Holdings's market capitalization (E) is $765.024 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Hyliion Holdings's latest one-year quarterly average Book Value of Debt (D) is $4.9804 Mil.
a) weight of equity = E / (E + D) = 765.024 / (765.024 + 4.9804) = 0.9935
b) weight of debt = D / (E + D) = 4.9804 / (765.024 + 4.9804) = 0.0065
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.493%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Hyliion Holdings's beta is 5.6880.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.493% + 5.6880 * 6% = 38.621%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Hyliion Holdings's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $4.9804 Mil.
Cost of Debt = -0 / 4.9804 = 0%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / -51.671 = 0%.
Hyliion Holdings's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9935
*
38.621%
+
0.0065
*
0%
*
(1 - 0%)
=
38.37%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hyliion Holdings (HYLN) has a WACC % of 38.37% as of Jul. 07, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Hyliion Holdings and its competitors. This is 218% above median its historical median of 12.05. Over the past decade, Hyliion Holdings' WACC % has ranged from 7.10 to 38.37. According to the industry distribution chart, Hyliion Holdings ranks #1337 out of 1343 companies in the Vehicles & Parts industry, placing it in the top 99.6%.
Is Hyliion Holdings' WACC % too high?
Hyliion Holdings' current WACC % of 38.37% is 218% above median its 10-year median of 12.05. Over the past 10 years, this metric has ranged from a low of 7.10 to a high of 38.37. The Vehicles & Parts industry median WACC % is 8.57. Hyliion Holdings' value of 38.37% is 347.7% above this industry median. Based on the distribution chart, Hyliion Holdings ranks #1337 out of 1343 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Hyliion Holdings has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hyliion Holdings' WACC % compare to FOXF and SMP?
According to the Vehicles & Parts industry distribution chart, Hyliion Holdings ranks #1337 out of 1343 companies for WACC %. This places Hyliion Holdings in the lower half of its industry. The industry median WACC % is 8.57. Hyliion Holdings' value of 38.37% is 347.7% above this benchmark. Historically, Hyliion Holdings' own WACC % has ranged from 7.10 to 38.37 over the past decade. While the company's 10-year median is 12.05 vs. the industry median of 8.57, Hyliion Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.57, based on 1,343 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hyliion Holdings's current WACC % of 38.37% is 347.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Hyliion Holdings and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hyliion Holdings's current WACC % is 38.37%, which is 218% above median its own 10-year median of 12.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hyliion Holdings stock overvalued right now?
Based on GuruFocus' analysis, Hyliion Holdings (HYLN) is currently considered Fairly Valued. The stock's GF Value™ is $4.20, compared to a current price of $4.29 — trading 2.1% above its estimated fair value. The current WACC % is 38.37%, which is 218% above median its 10-year median of 12.05 and 347.7% above the Vehicles & Parts industry median of 8.57. Hyliion Holdings' overall GF Score™ is 55/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Hyliion Holdings (HYLN), the current WACC % is 38.37% as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hyliion Holdings (HYLN) Overvalued in 2026?
Based on GuruFocus' analysis, Hyliion Holdings stock appears to be overvalued.
The current stock price of $4.29 is trading 2.1% above its estimated GF Value™ of $4.20.
GuruFocus considers Hyliion Holdings to be Fairly Valued.
Key valuation signals for HYLN:
WACC %: 38.37% (218% above median its 10-year median of 12.05)
GF Value™: $4.20 vs. price of $4.29 (2.1% above fair value)
Industry Position: 347.7% above the Vehicles & Parts median (#1337 of 1343)
No single metric tells the full story. See the HYLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hyliion Holdings Corp designs and develops power generators for stationary and mobile applications and provides R&D service. It provides solutions that enable clean, flexible, and affordable electricity production. The company focuses on delivering distributed power generators that can operate on various fuel sources to future-proof against an ever-changing energy economy. In addition to stationary power solutions, it focuses on mobile applications, including vehicles and marine technologies. Its products and services include: KARNO Power Modules which is a modular, fully enclosed, fuel-agnostic and fully integrated power generating solution.
55GF Score
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