TSE
Trinseo SA
Price:  
2.80 
USD
Volume:  
343,315.00
United States | Chemicals
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TSE WACC - Weighted Average Cost of Capital

The WACC of Trinseo SA (TSE) is 15.3%.

The Cost of Equity of Trinseo SA (TSE) is 67.90%.
The Cost of Debt of Trinseo SA (TSE) is 15.15%.

Range Selected
Cost of equity 58.20% - 77.60% 67.90%
Tax rate 10.30% - 14.60% 12.45%
Cost of debt 6.40% - 23.90% 15.15%
WACC 7.8% - 22.7% 15.3%
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 11.81 12.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 58.20% 77.60%
Tax rate 10.30% 14.60%
Debt/Equity ratio 24.16 24.16
Cost of debt 6.40% 23.90%
After-tax WACC 7.8% 22.7%
Selected WACC 15.3%

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 (67.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (11.81) + 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.