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.