TTEC
TTEC Holdings Inc
Price:  
5.17 
USD
Volume:  
134,558
United States | IT Services

TTEC WACC - Weighted Average Cost of Capital

The WACC of TTEC Holdings Inc (TTEC) is 10.0%.

The Cost of Equity of TTEC Holdings Inc (TTEC) is 18.85%.
The Cost of Debt of TTEC Holdings Inc (TTEC) is 10.75%.

RangeSelected
Cost of equity14.7% - 23.0%18.85%
Tax rate24.0% - 26.9%25.45%
Cost of debt5.9% - 15.6%10.75%
WACC6.4% - 13.6%10.0%
WACC

TTEC WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta2.363.23
Additional risk adjustments0.0%0.5%
Cost of equity14.7%23.0%
Tax rate24.0%26.9%
Debt/Equity ratio
4.224.22
Cost of debt5.9%15.6%
After-tax WACC6.4%13.6%
Selected WACC10.0%

TTEC'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 TTEC:

cost_of_equity (18.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.36) + 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.