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Tetra Tech Inc (TTEK) — WACC Analysis

WACC Breakdown

Tetra Tech Inc (TTEK) has a weighted average cost of capital (WACC) of 8.4%. The cost of equity is 8.8%, derived from a beta of 0.85 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.9%. The capital structure is 92.1% equity and 7.9% debt.

Interpretation

A WACC of 8.4% is moderate, reflecting the market's balanced risk assessment of Tetra Tech Inc.

Investors can compare TTEK's WACC of 8.4% against industry peers to gauge its relative financing costs. A beta of 0.85 reflects the stock's volatility relative to the broader market.

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VALUATION

TTEK WACC: 8.39% for Tetra Tech Inc

Current inputs imply a 8.77% cost of equity and a 4.96% 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

Tetra Tech Inc Common Stock (TTEK) WACC Results
Weighted Average Cost of Capital
8.39%
Cost of Equity
8.77%
Risk-Free Rate4.96%
Beta0.85
Market Risk Premium4.23%
Cost of Debt
3.92%
Pre-Tax Cost of Debt4.96%
Tax Rate21.00%
Tax Shield1.04%
Capital Structure
Equity: 92.15%($9399.39M)
Debt: 7.85%($801.06M)
Equity Component
8.08%
92.15% × 8.77%
Debt Component
0.31%
7.85% × 3.92%

Tetra Tech Inc (TTEK) WACC in context

Tetra Tech Inc (TTEK) currently screens with an estimated WACC of 8.39%. That blends a 8.77% cost of equity, a 4.96% pre-tax cost of debt, and a 92.15% 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 TTEK WACC implies

A 8.39% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates TTEK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.85 and equity accounts for 92.15% 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.