TYG
Tortoise Energy Infrastructure Corp
Price:  
40.85 
USD
Volume:  
57,274.00
United States | N/A
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TYG WACC - Weighted Average Cost of Capital

The WACC of Tortoise Energy Infrastructure Corp (TYG) is 9.2%.

The Cost of Equity of Tortoise Energy Infrastructure Corp (TYG) is 10.20%.
The Cost of Debt of Tortoise Energy Infrastructure Corp (TYG) is 5.50%.

Range Selected
Cost of equity 9.10% - 11.30% 10.20%
Tax rate 9.60% - 12.80% 11.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.0% - 10.3% 9.2%
WACC

TYG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.14 1.16
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 11.30%
Tax rate 9.60% 12.80%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.00% 7.00%
After-tax WACC 8.0% 10.3%
Selected WACC 9.2%

TYG'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 TYG:

cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.14) + 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.