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Trimble Inc. Common Stock (TRMB) — WACC Analysis

WACC Breakdown

Trimble Inc. Common Stock (TRMB) has a weighted average cost of capital (WACC) of 9.7%. The cost of equity is 10.2%, derived from a beta of 1.35 and a risk-free rate of 5.0%. The after-tax cost of debt is 5.5%. The capital structure is 90.4% equity and 9.6% debt.

Interpretation

A WACC of 9.7% is moderate, reflecting the market's balanced risk assessment of Trimble Inc. Common Stock.

Investors can compare TRMB's WACC of 9.7% against industry peers to gauge its relative financing costs. A beta of 1.35 reflects the stock's volatility relative to the broader market.

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VALUATION

TRMB WACC: 9.72% for Trimble Inc. Common Stock

Current inputs imply a 10.18% cost of equity and a 5.47% 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

Trimble Inc. Common Stock Common Stock (TRMB) WACC Results
Weighted Average Cost of Capital
9.72%
Cost of Equity
10.18%
Risk-Free Rate4.96%
Beta1.35
Market Risk Premium4.23%
Cost of Debt
5.47%
Pre-Tax Cost of Debt5.47%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 90.37%($13.70B)
Debt: 9.63%($1459.30M)
Equity Component
9.20%
90.37% × 10.18%
Debt Component
0.53%
9.63% × 5.47%

Trimble Inc. Common Stock (TRMB) WACC in context

Trimble Inc. Common Stock (TRMB) currently screens with an estimated WACC of 9.72%. That blends a 10.18% cost of equity, a 5.47% pre-tax cost of debt, and a 90.37% 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 TRMB WACC implies

A 9.72% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates TRMB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.35 and equity accounts for 90.37% 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.