Question 1

What is Texas Capital Bancshares, Inc.'s WACC?

Accepted Answer

Texas Capital Bancshares, Inc. (TCBI) has a Weighted Average Cost of Capital (WACC) of 20.00%. This is calculated using a Cost of Equity of 8.84% (via CAPM with a beta of 1.09) and a pre-tax Cost of Debt of 119.75%, with an equity weight of 86.76% in the capital structure.

Question 2

Is Texas Capital Bancshares, Inc.'s WACC high or low?

Accepted Answer

Texas Capital Bancshares, Inc.'s WACC of 20.00% is above the typical range, indicating higher perceived risk and cost of capital. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Texas Capital Bancshares, Inc.'s WACC calculated?

Accepted Answer

Texas Capital Bancshares, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.84% is derived from the CAPM model using a beta of 1.09. The pre-tax Cost of Debt (Rd) is 119.75%. The capital structure is 86.76% equity and 13.24% debt.

Texas Capital Bancshares, Inc. (TCBI) — WACC 分析

WACC 构成

解读

Texas Capital Bancshares, Inc.（TCBI）WACC：20.00%

WACC计算器

Texas Capital Bancshares, Inc.（TCBI） WACC 解读

TCBI 公司分析

TCBI DCF 估值

继续做同行对比