TTR.V
Titanium Transportation Group Inc
Price:  
2.57 
CAD
Volume:  
88,720.00
Canada | Road & Rail
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TTR.V WACC - Weighted Average Cost of Capital

The WACC of Titanium Transportation Group Inc (TTR.V) is 8.5%.

The Cost of Equity of Titanium Transportation Group Inc (TTR.V) is 13.75%.
The Cost of Debt of Titanium Transportation Group Inc (TTR.V) is 5.50%.

Range Selected
Cost of equity 11.40% - 16.10% 13.75%
Tax rate 28.60% - 30.40% 29.50%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.8% - 10.1% 8.5%
WACC

TTR.V WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.5% 6.5%
Adjusted beta 1.31 1.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 16.10%
Tax rate 28.60% 30.40%
Debt/Equity ratio 1.13 1.13
Cost of debt 4.00% 7.00%
After-tax WACC 6.8% 10.1%
Selected WACC 8.5%

TTR.V'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 TTR.V:

cost_of_equity (13.75%) = risk_free_rate (4.45%) + equity_risk_premium (6.00%) * adjusted_beta (1.31) + 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.