TFIN
Triumph Financial Inc
Price:  
61.99 
USD
Volume:  
736,286
United States | Banks

TFIN WACC - Weighted Average Cost of Capital

The WACC of Triumph Financial Inc (TFIN) is 8.9%.

The Cost of Equity of Triumph Financial Inc (TFIN) is 9.35%.
The Cost of Debt of Triumph Financial Inc (TFIN) is 5%.

RangeSelected
Cost of equity8.3% - 10.4%9.35%
Tax rate22.4% - 23.4%22.9%
Cost of debt5.0% - 5.0%5%
WACC8.0% - 9.9%8.9%
WACC

TFIN WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.960.98
Additional risk adjustments0.0%0.5%
Cost of equity8.3%10.4%
Tax rate22.4%23.4%
Debt/Equity ratio
0.070.07
Cost of debt5.0%5.0%
After-tax WACC8.0%9.9%
Selected WACC8.9%

TFIN'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 TFIN:

cost_of_equity (9.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.96) + 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.