TDW
Tidewater Inc
Price:  
46.50 
USD
Volume:  
1,858,965.00
United States | Energy Equipment & Services
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TDW WACC - Weighted Average Cost of Capital

The WACC of Tidewater Inc (TDW) is 9.3%.

The Cost of Equity of Tidewater Inc (TDW) is 10.20%.
The Cost of Debt of Tidewater Inc (TDW) is 7.80%.

Range Selected
Cost of equity 8.60% - 11.80% 10.20%
Tax rate 15.00% - 25.60% 20.30%
Cost of debt 5.30% - 10.30% 7.80%
WACC 7.7% - 10.9% 9.3%
WACC

TDW WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.02 1.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 11.80%
Tax rate 15.00% 25.60%
Debt/Equity ratio 0.28 0.28
Cost of debt 5.30% 10.30%
After-tax WACC 7.7% 10.9%
Selected WACC 9.3%

TDW'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 TDW:

cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.02) + 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.