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Target Hospitality Corp. Common Stock (TH) — WACC Analysis

WACC Breakdown

Target Hospitality Corp. Common Stock (TH) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 8.1%, derived from a beta of 0.51 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.5%. The capital structure is 97.6% equity and 2.4% debt.

Interpretation

A WACC of 7.9% suggests that the market views Target Hospitality Corp. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare TH's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 0.51 reflects the stock's volatility relative to the broader market.

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VALUATION

TH WACC: 7.94% for Target Hospitality Corp. Common Stock

Current inputs imply a 8.07% cost of equity and a 2.53% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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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

Target Hospitality Corp. Common Stock Common Stock (TH) WACC Results
Weighted Average Cost of Capital
7.94%
Cost of Equity
8.07%
Risk-Free Rate5.22%
Beta0.51
Market Risk Premium4.23%
Cost of Debt
2.53%
Pre-Tax Cost of Debt2.53%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 97.64%($1845.00M)
Debt: 2.36%($44.65M)
Equity Component
7.88%
97.64% × 8.07%
Debt Component
0.06%
2.36% × 2.53%

Target Hospitality Corp. Common Stock (TH) WACC in context

Target Hospitality Corp. Common Stock (TH) currently screens with an estimated WACC of 7.94%. That blends a 8.07% cost of equity, a 2.53% pre-tax cost of debt, and a 97.64% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What TH WACC implies

A 7.94% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates TH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.51 and equity accounts for 97.64% 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.

TH WACC: 7.94% — Target Hospitality Corp. Common Stock Cost of Capital (October 2026) | DeepViews