Skip to content

Terreno Realty Corporation (TRNO) — WACC Analysis

WACC Breakdown

Terreno Realty Corporation (TRNO) has a weighted average cost of capital (WACC) of 8.1%. The cost of equity is 8.6%, derived from a beta of 0.80 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.7%. The capital structure is 88.3% equity and 11.7% debt.

Interpretation

A WACC of 8.1% is moderate, reflecting the market's balanced risk assessment of Terreno Realty Corporation.

Investors can compare TRNO's WACC of 8.1% against industry peers to gauge its relative financing costs. A beta of 0.80 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

TRNO WACC: 8.06% for Terreno Realty Corporation

Current inputs imply a 8.64% cost of equity and a 3.74% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Terreno Realty Corporation Common Stock (TRNO) WACC Results
Weighted Average Cost of Capital
8.06%
Cost of Equity
8.64%
Risk-Free Rate4.97%
Beta0.80
Market Risk Premium4.23%
Cost of Debt
3.74%
Pre-Tax Cost of Debt3.74%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 88.30%($7114.67M)
Debt: 11.70%($942.47M)
Equity Component
7.63%
88.30% × 8.64%
Debt Component
0.44%
11.70% × 3.74%

Terreno Realty Corporation (TRNO) WACC in context

Terreno Realty Corporation (TRNO) currently screens with an estimated WACC of 8.06%. That blends a 8.64% cost of equity, a 3.74% pre-tax cost of debt, and a 88.30% 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 TRNO WACC implies

A 8.06% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates TRNO

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.80 and equity accounts for 88.30% 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.