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TripAdvisor, Inc. (TRIP) — WACC Analysis

WACC Breakdown

TripAdvisor, Inc. (TRIP) has a weighted average cost of capital (WACC) of 8.5%. The cost of equity is 10.3%, derived from a beta of 1.37 and a risk-free rate of 5.0%. The after-tax cost of debt is 6.2%. The capital structure is 56.7% equity and 43.3% debt.

Interpretation

A WACC of 8.5% is moderate, reflecting the market's balanced risk assessment of TripAdvisor, Inc..

Investors can compare TRIP's WACC of 8.5% against industry peers to gauge its relative financing costs. A beta of 1.37 reflects the stock's volatility relative to the broader market.

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VALUATION

TRIP WACC: 8.50% for TripAdvisor, Inc.

Current inputs imply a 10.25% cost of equity and a 7.86% 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

TripAdvisor, Inc. Common Stock (TRIP) WACC Results
Weighted Average Cost of Capital
8.50%
Cost of Equity
10.25%
Risk-Free Rate4.98%
Beta1.37
Market Risk Premium4.23%
Cost of Debt
6.21%
Pre-Tax Cost of Debt7.86%
Tax Rate21.00%
Tax Shield1.65%
Capital Structure
Equity: 56.72%($1080.58M)
Debt: 43.28%($824.40M)
Equity Component
5.82%
56.72% × 10.25%
Debt Component
2.69%
43.28% × 6.21%

TripAdvisor, Inc. (TRIP) WACC in context

TripAdvisor, Inc. (TRIP) currently screens with an estimated WACC of 8.50%. That blends a 10.25% cost of equity, a 7.86% pre-tax cost of debt, and a 56.72% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What TRIP WACC implies

A 8.50% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates TRIP

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.37 and equity accounts for 56.72% 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.