GTS
Triple-S Management Corp
Price:  
35.99 
USD
Volume:  
609,109.00
Czechia | Health Care Providers & Services
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GTS WACC - Weighted Average Cost of Capital

The WACC of Triple-S Management Corp (GTS) is 7.4%.

The Cost of Equity of Triple-S Management Corp (GTS) is 7.80%.
The Cost of Debt of Triple-S Management Corp (GTS) is 5.00%.

Range Selected
Cost of equity 6.70% - 8.90% 7.80%
Tax rate 30.50% - 31.40% 30.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.4% - 8.4% 7.4%
WACC

GTS WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 0.82 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 8.90%
Tax rate 30.50% 31.40%
Debt/Equity ratio 0.1 0.1
Cost of debt 5.00% 5.00%
After-tax WACC 6.4% 8.4%
Selected WACC 7.4%

GTS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for GTS:

cost_of_equity (7.80%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.82) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.