Question 1

What is Trimas Corporation's WACC?

Accepted Answer

Trimas Corporation (TRS) has a Weighted Average Cost of Capital (WACC) of 7.40%. This is calculated using a Cost of Equity of 8.40% (via CAPM with a beta of 0.84) and a pre-tax Cost of Debt of 4.73%, with an equity weight of 78.55% in the capital structure.

Question 2

Is Trimas Corporation's WACC high or low?

Accepted Answer

Trimas Corporation's WACC of 7.40% 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 Trimas Corporation's WACC calculated?

Accepted Answer

Trimas Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.40% is derived from the CAPM model using a beta of 0.84. The pre-tax Cost of Debt (Rd) is 4.73%. The capital structure is 78.55% equity and 21.45% debt.

Trimas Corporation (TRS) — WACC 分析

WACC 构成

解读

Trimas Corporation（TRS）WACC：7.40%

WACC计算器

Trimas Corporation（TRS） WACC 解读

TRS 公司分析

TRS DCF 估值

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