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TENNANT COMPANY (TNC) — WACC Analysis

WACC Breakdown

TENNANT COMPANY (TNC) has a weighted average cost of capital (WACC) of 7.2%. The cost of equity is 9.0%, derived from a beta of 0.83 and a risk-free rate of 5.2%. The after-tax cost of debt is 1.6%. The capital structure is 75.9% equity and 24.1% debt.

Interpretation

A WACC of 7.2% suggests that the market views TENNANT COMPANY as relatively low-risk, with a lower cost of financing.

Investors can compare TNC's WACC of 7.2% against industry peers to gauge its relative financing costs. A beta of 0.83 reflects the stock's volatility relative to the broader market.

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VALUATION

TNC WACC: 7.19% for TENNANT COMPANY

Current inputs imply a 8.97% cost of equity and a 2.00% 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

TENNANT COMPANY Common Stock (TNC) WACC Results
Weighted Average Cost of Capital
7.19%
Cost of Equity
8.97%
Risk-Free Rate5.22%
Beta0.83
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 75.87%($1128.66M)
Debt: 24.13%($358.90M)
Equity Component
6.81%
75.87% × 8.97%
Debt Component
0.38%
24.13% × 1.58%

TENNANT COMPANY (TNC) WACC in context

TENNANT COMPANY (TNC) currently screens with an estimated WACC of 7.19%. That blends a 8.97% cost of equity, a 2.00% pre-tax cost of debt, and a 75.87% 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 TNC WACC implies

A 7.19% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates TNC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.83 and equity accounts for 75.87% 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.