TSE
Trinseo SA
Price:  
2.10 
USD
Volume:  
248,847.00
United States | Chemicals
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TSE WACC - Weighted Average Cost of Capital

The WACC of Trinseo SA (TSE) is 6.6%.

The Cost of Equity of Trinseo SA (TSE) is 34.35%.
The Cost of Debt of Trinseo SA (TSE) is 6.70%.

Range Selected
Cost of equity 13.50% - 55.20% 34.35%
Tax rate 10.30% - 14.60% 12.45%
Cost of debt 6.40% - 7.00% 6.70%
WACC 6.0% - 7.3% 6.6%
WACC

TSE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2.1 8.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 55.20%
Tax rate 10.30% 14.60%
Debt/Equity ratio 35.49 35.49
Cost of debt 6.40% 7.00%
After-tax WACC 6.0% 7.3%
Selected WACC 6.6%

TSE'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 TSE:

cost_of_equity (34.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.1) + 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.