TUP WACC - Weighted Average Cost of Capital

The WACC of Tupperware Brands Corp (TUP) is 5.2%.

The Cost of Equity of Tupperware Brands Corp (TUP) is 716.60%.

The Cost of Debt of Tupperware Brands Corp (TUP) is 6.80%.

	Range	Selected
Cost of equity	113.70% - 1,319.50%	716.60%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.50% - 9.10%	6.80%
WACC	3.3% - 7.1%	5.2%

WACC

TUP WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	23.87	234.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	113.70%	1,319.50%

Tax rate	26.20%	27.00%
Debt/Equity ratio	2640.37	2640.37
Cost of debt	4.50%	9.10%

After-tax WACC	3.3%	7.1%


Selected WACC	5.2%

TUP'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 TUP:

cost_of_equity (716.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (23.87) + 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.