TTMI
TTM Technologies Inc
Price:  
26.85 
USD
Volume:  
794,831.00
United States | Electronic Equipment, Instruments & Components
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TTMI WACC - Weighted Average Cost of Capital

The WACC of TTM Technologies Inc (TTMI) is 8.5%.

The Cost of Equity of TTM Technologies Inc (TTMI) is 10.10%.
The Cost of Debt of TTM Technologies Inc (TTMI) is 5.15%.

Range Selected
Cost of equity 8.80% - 11.40% 10.10%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.30% 5.15%
WACC 7.5% - 9.5% 8.5%
WACC

TTMI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.08 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.40%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.34 0.34
Cost of debt 5.00% 5.30%
After-tax WACC 7.5% 9.5%
Selected WACC 8.5%

TTMI'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 TTMI:

cost_of_equity (10.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.08) + 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.