TSPH
TuSimple Holdings Inc
Price:  
0.33 
USD
Volume:  
52,420.00
United States | Ground Transportation
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TSPH WACC - Weighted Average Cost of Capital

The WACC of TuSimple Holdings Inc (TSPH) is 8.5%.

The Cost of Equity of TuSimple Holdings Inc (TSPH) is 8.90%.
The Cost of Debt of TuSimple Holdings Inc (TSPH) is 7.00%.

Range Selected
Cost of equity 7.90% - 9.90% 8.90%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.6% - 9.5% 8.5%
WACC

TSPH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.87 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 9.90%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.1 0.1
Cost of debt 7.00% 7.00%
After-tax WACC 7.6% 9.5%
Selected WACC 8.5%

TSPH'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 TSPH:

cost_of_equity (8.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.87) + 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.