TRITN.BK WACC - Weighted Average Cost of Capital

The WACC of Triton Holding PCL (TRITN.BK) is 8.6%.

The Cost of Equity of Triton Holding PCL (TRITN.BK) is 11.90%.

The Cost of Debt of Triton Holding PCL (TRITN.BK) is 5.90%.

	Range	Selected
Cost of equity	8.70% - 15.10%	11.90%
Tax rate	0.70% - 2.60%	1.65%
Cost of debt	4.00% - 7.80%	5.90%
WACC	6.1% - 11.0%	8.6%

WACC

TRITN.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.83	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	15.10%

Tax rate	0.70%	2.60%
Debt/Equity ratio	1.2	1.2
Cost of debt	4.00%	7.80%

After-tax WACC	6.1%	11.0%


Selected WACC	8.6%

TRITN.BK'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 TRITN.BK:

cost_of_equity (11.90%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.83) + 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.