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TruGolf Holdings, Inc. Class A Common Stock (TRUG) — WACC Analysis

WACC Breakdown

TruGolf Holdings, Inc. Class A Common Stock (TRUG) has a weighted average cost of capital (WACC) of 20.0%. The cost of equity is 9.3%, derived from a beta of 0.95 and a risk-free rate of 5.2%. The after-tax cost of debt is 64.5%. The capital structure is 43.9% equity and 56.1% debt.

Interpretation

A WACC of 20.0% indicates that the market perceives TruGolf Holdings, Inc. Class A Common Stock as higher-risk, requiring a greater return to compensate investors.

Investors can compare TRUG's WACC of 20.0% against industry peers to gauge its relative financing costs. A beta of 0.95 reflects the stock's volatility relative to the broader market.

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VALUATION

TRUG WACC: 20.00% for TruGolf Holdings, Inc. Class A Common Stock

Current inputs imply a 9.31% cost of equity and a 64.55% 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

TruGolf Holdings, Inc. Class A Common Stock Common Stock (TRUG) WACC Results
Weighted Average Cost of Capital
20.00%
Cost of Equity
9.31%
Risk-Free Rate5.22%
Beta0.95
Market Risk Premium4.23%
Cost of Debt
64.55%
Pre-Tax Cost of Debt64.55%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 43.91%($2.27M)
Debt: 56.09%($2.90M)
Equity Component
4.09%
43.91% × 9.31%
Debt Component
36.21%
56.09% × 64.55%

TruGolf Holdings, Inc. Class A Common Stock (TRUG) WACC in context

TruGolf Holdings, Inc. Class A Common Stock (TRUG) currently screens with an estimated WACC of 20.00%. That blends a 9.31% cost of equity, a 64.55% pre-tax cost of debt, and a 43.91% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What TRUG WACC implies

A 20.00% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates TRUG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.95 and equity accounts for 43.91% 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.