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TRONOX LIMITED CL A ORDINARY SHARES (TROX) — WACC Analysis

WACC Breakdown

TRONOX LIMITED CL A ORDINARY SHARES (TROX) has a weighted average cost of capital (WACC) of 7.1%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 6.6%. The capital structure is 17.8% equity and 82.2% debt.

Interpretation

A WACC of 7.1% suggests that the market views TRONOX LIMITED CL A ORDINARY SHARES as relatively low-risk, with a lower cost of financing.

Investors can compare TROX's WACC of 7.1% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

TROX WACC: 7.07% for TRONOX LIMITED CL A ORDINARY SHARES

Current inputs imply a 9.19% cost of equity and a 6.61% 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
[03]
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

TRONOX LIMITED CL A ORDINARY SHARES Common Stock (TROX) WACC Results
Weighted Average Cost of Capital
7.07%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
6.61%
Pre-Tax Cost of Debt6.61%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 17.78%($689.90M)
Debt: 82.22%($3191.00M)
Equity Component
1.63%
17.78% × 9.19%
Debt Component
5.44%
82.22% × 6.61%

TRONOX LIMITED CL A ORDINARY SHARES (TROX) WACC in context

TRONOX LIMITED CL A ORDINARY SHARES (TROX) currently screens with an estimated WACC of 7.07%. That blends a 9.19% cost of equity, a 6.61% pre-tax cost of debt, and a 17.78% 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 TROX WACC implies

A 7.07% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates TROX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 17.78% 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.