Question 1

What is TripAdvisor, Inc.'s WACC?

Accepted Answer

TripAdvisor, Inc. (TRIP) has a Weighted Average Cost of Capital (WACC) of 7.20%. This is calculated using a Cost of Equity of 10.36% (via CAPM with a beta of 1.45) and a pre-tax Cost of Debt of 5.38%, with an equity weight of 48.24% in the capital structure.

Question 2

Is TripAdvisor, Inc.'s WACC high or low?

Accepted Answer

TripAdvisor, Inc.'s WACC of 7.20% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. 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 TripAdvisor, Inc.'s WACC calculated?

Accepted Answer

TripAdvisor, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 10.36% is derived from the CAPM model using a beta of 1.45. The pre-tax Cost of Debt (Rd) is 5.38%. The capital structure is 48.24% equity and 51.76% debt.

TripAdvisor, Inc. (TRIP) — WACC 分析

WACC 构成

解读

TripAdvisor, Inc.（TRIP）WACC：7.20%

WACC计算器

TripAdvisor, Inc.（TRIP） WACC 解读

TRIP 公司分析

TRIP DCF 估值

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