Skip to content

The Bancorp Inc. (TBBK) — WACC Analysis

WACC Breakdown

The Bancorp Inc. (TBBK) has a weighted average cost of capital (WACC) of 12.2%. The cost of equity is 10.2%, derived from a beta of 1.36 and a risk-free rate of 5.0%. The after-tax cost of debt is 17.5%. The capital structure is 73.4% equity and 26.6% debt.

Interpretation

A WACC of 12.2% indicates that the market perceives The Bancorp Inc. as higher-risk, requiring a greater return to compensate investors.

Investors can compare TBBK's WACC of 12.2% against industry peers to gauge its relative financing costs. A beta of 1.36 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

TBBK WACC: 12.15% for The Bancorp Inc.

Current inputs imply a 10.22% cost of equity and a 22.14% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

The Bancorp Inc. Common Stock (TBBK) WACC Results
Weighted Average Cost of Capital
12.15%
Cost of Equity
10.22%
Risk-Free Rate4.97%
Beta1.36
Market Risk Premium4.23%
Cost of Debt
17.49%
Pre-Tax Cost of Debt22.14%
Tax Rate21.00%
Tax Shield4.65%
Capital Structure
Equity: 73.36%($2048.72M)
Debt: 26.64%($744.00M)
Equity Component
7.49%
73.36% × 10.22%
Debt Component
4.66%
26.64% × 17.49%

The Bancorp Inc. (TBBK) WACC in context

The Bancorp Inc. (TBBK) currently screens with an estimated WACC of 12.15%. That blends a 10.22% cost of equity, a 22.14% pre-tax cost of debt, and a 73.36% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What TBBK WACC implies

A 12.15% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates TBBK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.36 and equity accounts for 73.36% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.