The WACC of Trane Technologies PLC (TT) is 8.7%.
Range | Selected | |
Cost of equity | 7.60% - 10.40% | 9.00% |
Tax rate | 18.10% - 19.00% | 18.55% |
Cost of debt | 4.50% - 4.50% | 4.50% |
WACC | 7.4% - 10.1% | 8.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.8 | 0.99 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.60% | 10.40% |
Tax rate | 18.10% | 19.00% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 4.50% | 4.50% |
After-tax WACC | 7.4% | 10.1% |
Selected WACC | 8.7% | |