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TC Energy Corporation (TRP) — WACC Analysis

WACC Breakdown

TC Energy Corporation (TRP) has a weighted average cost of capital (WACC) of 6.7%. The cost of equity is 7.4%, derived from a beta of 0.47 and a risk-free rate of 4.7%. The after-tax cost of debt is 5.4%. The capital structure is 64.5% equity and 35.5% debt.

Interpretation

A WACC of 6.7% suggests that the market views TC Energy Corporation as relatively low-risk, with a lower cost of financing.

Investors can compare TRP's WACC of 6.7% against industry peers to gauge its relative financing costs. A beta of 0.47 reflects the stock's volatility relative to the broader market.

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VALUATION

TRP WACC: 6.71% for TC Energy Corporation

Current inputs imply a 7.41% cost of equity and a 6.88% 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

TC Energy Corporation Common Stock (TRP) WACC Results
Weighted Average Cost of Capital
6.71%
Cost of Equity
7.41%
Risk-Free Rate4.67%
Beta0.47
Market Risk Premium4.23%
Cost of Debt
5.44%
Pre-Tax Cost of Debt6.88%
Tax Rate21.00%
Tax Shield1.45%
Capital Structure
Equity: 64.54%($64.44B)
Debt: 35.46%($35.40B)
Equity Component
4.78%
64.54% × 7.41%
Debt Component
1.93%
35.46% × 5.44%

TC Energy Corporation (TRP) WACC in context

TC Energy Corporation (TRP) currently screens with an estimated WACC of 6.71%. That blends a 7.41% cost of equity, a 6.88% pre-tax cost of debt, and a 64.54% 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 TRP WACC implies

A 6.71% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates TRP

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.47 and equity accounts for 64.54% 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.