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TH International Limited Ordinary shares (THCH) — WACC Analysis

WACC Breakdown

TH International Limited Ordinary shares (THCH) has a weighted average cost of capital (WACC) of 5.5%. The cost of equity is 7.8%, derived from a beta of 0.41 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.1%. The capital structure is 37.5% equity and 62.5% debt.

Interpretation

A WACC of 5.5% suggests that the market views TH International Limited Ordinary shares as relatively low-risk, with a lower cost of financing.

Investors can compare THCH's WACC of 5.5% against industry peers to gauge its relative financing costs. A beta of 0.41 reflects the stock's volatility relative to the broader market.

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VALUATION

THCH WACC: 5.46% for TH International Limited Ordinary shares

Current inputs imply a 7.79% cost of equity and a 4.07% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

TH International Limited Ordinary shares Common Stock (THCH) WACC Results
Weighted Average Cost of Capital
5.46%
Cost of Equity
7.79%
Risk-Free Rate5.22%
Beta0.41
Market Risk Premium4.23%
Cost of Debt
4.07%
Pre-Tax Cost of Debt4.07%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 37.48%($34.28M)
Debt: 62.52%($57.19M)
Equity Component
2.92%
37.48% × 7.79%
Debt Component
2.54%
62.52% × 4.07%

TH International Limited Ordinary shares (THCH) WACC in context

TH International Limited Ordinary shares (THCH) currently screens with an estimated WACC of 5.46%. That blends a 7.79% cost of equity, a 4.07% pre-tax cost of debt, and a 37.48% 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 THCH WACC implies

A 5.46% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates THCH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.41 and equity accounts for 37.48% 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.