TRS
TriMas Corp
Price:  
26.37 
USD
Volume:  
331,894.00
United States | Machinery
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TRS WACC - Weighted Average Cost of Capital

The WACC of TriMas Corp (TRS) is 9.2%.

The Cost of Equity of TriMas Corp (TRS) is 11.20%.
The Cost of Debt of TriMas Corp (TRS) is 5.05%.

Range Selected
Cost of equity 9.80% - 12.60% 11.20%
Tax rate 19.80% - 21.10% 20.45%
Cost of debt 4.00% - 6.10% 5.05%
WACC 8.0% - 10.4% 9.2%
WACC

TRS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.3 1.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 12.60%
Tax rate 19.80% 21.10%
Debt/Equity ratio 0.39 0.39
Cost of debt 4.00% 6.10%
After-tax WACC 8.0% 10.4%
Selected WACC 9.2%

TRS'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 TRS:

cost_of_equity (11.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.3) + 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.