TRITN.BK WACC - Weighted Average Cost of Capital

The WACC of Triton Holding PCL (TRITN.BK) is 10.1%.

The Cost of Equity of Triton Holding PCL (TRITN.BK) is 7.05%.

The Cost of Debt of Triton Holding PCL (TRITN.BK) is 17.25%.

	Range	Selected
Cost of equity	5.40% - 8.70%	7.05%
Tax rate	3.50% - 5.60%	4.55%
Cost of debt	7.00% - 27.50%	17.25%
WACC	5.9% - 14.3%	10.1%

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	0.39	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	8.70%

Tax rate	3.50%	5.60%
Debt/Equity ratio	0.48	0.48
Cost of debt	7.00%	27.50%

After-tax WACC	5.9%	14.3%


Selected WACC	10.1%

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 (7.05%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.39) + 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.