TBI
TrueBlue Inc
Price:  
3.84 
USD
Volume:  
755,613.00
United States | Professional Services
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TrueBlue WACC - Weighted Average Cost of Capital

The WACC of TrueBlue Inc (TBI) is 8.4%.

The Cost of Equity of TrueBlue Inc (TBI) is 8.60%.
The Cost of Debt of TrueBlue Inc (TBI) is 7.00%.

Range Selected
Cost of equity 7.30% - 9.90% 8.60%
Tax rate 17.70% - 23.40% 20.55%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.3% - 9.6% 8.4%
WACC

TrueBlue WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.76 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.90%
Tax rate 17.70% 23.40%
Debt/Equity ratio 0.06 0.06
Cost of debt 7.00% 7.00%
After-tax WACC 7.3% 9.6%
Selected WACC 8.4%

TrueBlue'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 TrueBlue:

cost_of_equity (8.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.76) + 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.