TRMR.L
Tremor International Ltd
Price:  
198.80 
GBP
Volume:  
464,158.00
Israel | Media
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TRMR.L WACC - Weighted Average Cost of Capital

The WACC of Tremor International Ltd (TRMR.L) is 8.9%.

The Cost of Equity of Tremor International Ltd (TRMR.L) is 10.55%.
The Cost of Debt of Tremor International Ltd (TRMR.L) is 5.15%.

Range Selected
Cost of equity 9.30% - 11.80% 10.55%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 4.70% - 5.60% 5.15%
WACC 7.8% - 9.9% 8.9%
WACC

TRMR.L WACC calculation

Category Low High
Long-term bond rate 4.4% 4.9%
Equity market risk premium 6.4% 7.4%
Adjusted beta 0.75 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 11.80%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0.35 0.35
Cost of debt 4.70% 5.60%
After-tax WACC 7.8% 9.9%
Selected WACC 8.9%

TRMR.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 TRMR.L:

cost_of_equity (10.55%) = risk_free_rate (4.65%) + equity_risk_premium (6.90%) * adjusted_beta (0.75) + 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.