TPIC
TPI Composites Inc
Price:  
0.75 
USD
Volume:  
300,124.00
United States | Electrical Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

TPIC WACC - Weighted Average Cost of Capital

The WACC of TPI Composites Inc (TPIC) is 9.6%.

The Cost of Equity of TPI Composites Inc (TPIC) is 63.65%.
The Cost of Debt of TPI Composites Inc (TPIC) is 7.55%.

Range Selected
Cost of equity 51.50% - 75.80% 63.65%
Tax rate 12.70% - 18.40% 15.55%
Cost of debt 7.00% - 8.10% 7.55%
WACC 8.7% - 10.5% 9.6%
WACC

TPIC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 10.36 12.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 51.50% 75.80%
Tax rate 12.70% 18.40%
Debt/Equity ratio 16.86 16.86
Cost of debt 7.00% 8.10%
After-tax WACC 8.7% 10.5%
Selected WACC 9.6%

TPIC'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 TPIC:

cost_of_equity (63.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (10.36) + 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.