TGNA
Tegna Inc
Price:  
16.72 
USD
Volume:  
1,186,800
United States | Media

TGNA WACC - Weighted Average Cost of Capital

The WACC of Tegna Inc (TGNA) is 6.1%.

The Cost of Equity of Tegna Inc (TGNA) is 8.6%.
The Cost of Debt of Tegna Inc (TGNA) is 5.2%.

RangeSelected
Cost of equity6.9% - 10.3%8.6%
Tax rate22.3% - 23.2%22.75%
Cost of debt5.1% - 5.3%5.2%
WACC5.3% - 6.9%6.1%
WACC

TGNA WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.670.97
Additional risk adjustments0.0%0.5%
Cost of equity6.9%10.3%
Tax rate22.3%23.2%
Debt/Equity ratio
1.141.14
Cost of debt5.1%5.3%
After-tax WACC5.3%6.9%
Selected WACC6.1%

TGNA'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 TGNA:

cost_of_equity (8.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.67) + 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.