What is TGI's WACC?

Triumph Group Inc (TGI) WACC Analysis

As of June 14, 2025, Triumph Group Inc (TGI) carries a Weighted Average Cost of Capital (WACC) of 8.3%. WACC reflects the blended rate Triumph Group Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.4%, the cost of debt is 8.3%, and the effective tax rate is 7.7%.

Breakdown of WACC Components

  • Long-term bond rate: 3.9% – 4.4%
  • Equity market risk premium: 4.6% – 5.6%
  • Adjusted beta: 0.77 – 0.82
  • Additional risk adjustment: 0.0% – 0.5%
  • Debt-to-equity ratio: 0.49

What It Means for Investors

With a selected WACC of 8.3%, Triumph Group Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.