TI1.L WACC - Weighted Average Cost of Capital
The WACC of Trian Investors 1 Ltd (TI1.L) is 7.7%.
| Range | Selected | |
| Cost of equity | 9.3% - 13.4% | 11.35% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 8.7% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.89 | 1.21 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 13.4% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 8.7% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TI1.L | Trian Investors 1 Ltd | 1.03 | 3.55 | 1.93 |
| DZGYO.IS | Deniz Gayrimenkul Yatirim Ortakligi AS | 0.16 | 0.98 | 0.87 |
| EAB.HE | EAB Group Oyj | 0.17 | 0.71 | 0.63 |
| ESO.L | EPE Special Opportunities Ltd | 0.23 | 1.38 | 1.17 |
| HDFGS.IS | Hedef Girisim Sermayesi Yatirim Ortakligi AS | 0 | 0.96 | 0.96 |
| HXCK.DE | Ernst Russ AG | 0.01 | 0.49 | 0.49 |
| LBON.PA | Compagnie Lebon SA | 1.7 | 0.99 | 0.42 |
| MPCK.DE | MPC Muenchmeyer Petersen Capital AG | 0.02 | 0.38 | 0.37 |
| OPF.WA | Open Finance SA | 258.64 | 1.42 | 0.01 |
| RIV.L | River and Mercantile Group PLC | 0.03 | 1.03 | 1.01 |
| TAVI.L | Tavistock Investments PLC | 0.16 | 0.34 | 0.31 |
| Low | High | |
| Unlevered beta | 0.49 | 0.87 |
| Relevered beta | 0.84 | 1.31 |
| Adjusted relevered beta | 0.89 | 1.21 |
TI1.L'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 TI1.L:
cost_of_equity (11.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.89) + 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.