TTAM.TA WACC - Weighted Average Cost of Capital

The WACC of Tiv Taam Holdings 1 Ltd (TTAM.TA) is 7.4%.

The Cost of Equity of Tiv Taam Holdings 1 Ltd (TTAM.TA) is 8.80%.

The Cost of Debt of Tiv Taam Holdings 1 Ltd (TTAM.TA) is 7.05%.

	Range	Selected
Cost of equity	7.50% - 10.10%	8.80%
Tax rate	23.10% - 23.40%	23.25%
Cost of debt	6.10% - 8.00%	7.05%
WACC	6.4% - 8.4%	7.4%

WACC

TTAM.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.44	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.10%

Tax rate	23.10%	23.40%
Debt/Equity ratio	0.7	0.7
Cost of debt	6.10%	8.00%

After-tax WACC	6.4%	8.4%


Selected WACC	7.4%

TTAM.TA'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 TTAM.TA:

cost_of_equity (8.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.44) + 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.