TGNA WACC - Weighted Average Cost of Capital
The WACC of Tegna Inc (TGNA) is 6.1%.
| Range | Selected | |
| Cost of equity | 6.9% - 10.3% | 8.6% |
| Tax rate | 22.3% - 23.2% | 22.75% |
| Cost of debt | 5.1% - 5.3% | 5.2% |
| WACC | 5.3% - 6.9% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.67 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 10.3% |
| Tax rate | 22.3% | 23.2% |
| Debt/Equity ratio | 1.14 | 1.14 |
| Cost of debt | 5.1% | 5.3% |
| After-tax WACC | 5.3% | 6.9% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TGNA | Tegna Inc | 1.14 | 0.85 | 0.45 |
| AMCX | AMC Networks Inc | 8.52 | 0.64 | 0.08 |
| CJR.B.TO | Corus Entertainment Inc | 62.8 | 0.9 | 0.02 |
| DISCA | Discovery Inc | 1.21 | 1.13 | 0.58 |
| GTN | Gray Television Inc | 10.85 | 0.45 | 0.05 |
| NXST | Nexstar Media Group Inc | 1.17 | 0.74 | 0.39 |
| QYOU.V | QYOU Media Inc | 0.12 | 1.47 | 1.35 |
| SSP | E. W. Scripps Co | 9.09 | 0.15 | 0.02 |
| UOLI | Uonlive Corp | 0 | 0.96 | 0.96 |
| VIAC | ViacomCBS Inc | 0.85 | 1.48 | 0.89 |
| Low | High | |
| Unlevered beta | 0.27 | 0.5 |
| Relevered beta | 0.51 | 0.96 |
| Adjusted relevered beta | 0.67 | 0.97 |
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.