TTEC WACC - Weighted Average Cost of Capital

The WACC of TTEC Holdings Inc (TTEC) is 9.0%.

The Cost of Equity of TTEC Holdings Inc (TTEC) is 24.30%.

The Cost of Debt of TTEC Holdings Inc (TTEC) is 9.65%.

	Range	Selected
Cost of equity	20.10% - 28.50%	24.30%
Tax rate	21.90% - 26.90%	24.40%
Cost of debt	6.90% - 12.40%	9.65%
WACC	6.9% - 11.1%	9.0%

WACC

TTEC WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	3.53	4.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.10%	28.50%

Tax rate	21.90%	26.90%
Debt/Equity ratio	8.66	8.66
Cost of debt	6.90%	12.40%

After-tax WACC	6.9%	11.1%


Selected WACC	9.0%

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 (24.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3.53) + 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.