Question 1

What is TC Energy Corporation's WACC?

Accepted Answer

TC Energy Corporation (TRP) has a Weighted Average Cost of Capital (WACC) of 6.65%. This is calculated using a Cost of Equity of 7.27% (via CAPM with a beta of 0.50) and a pre-tax Cost of Debt of 6.88%, with an equity weight of 66.22% in the capital structure.

Question 2

Is TC Energy Corporation's WACC high or low?

Accepted Answer

TC Energy Corporation's WACC of 6.65% 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 TC Energy Corporation's WACC calculated?

Accepted Answer

TC Energy Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.27% is derived from the CAPM model using a beta of 0.50. The pre-tax Cost of Debt (Rd) is 6.88%. The capital structure is 66.22% equity and 33.78% debt.

TC Energy Corporation (TRP) — WACC 分析

WACC 构成

解读

TC Energy Corporation（TRP）WACC：6.65%

WACC计算器

TC Energy Corporation（TRP） WACC 解读

TRP 公司分析

TRP DCF 估值

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