Tsakos Energy Navigation Ltd (TNP) WACC Analysis

As of June 3, 2025, Tsakos Energy Navigation Ltd (TNP) carries a Weighted Average Cost of Capital (WACC) of 6.0%. WACC reflects the blended rate Tsakos Energy Navigation Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 6.9%, the cost of debt is 4.0%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.66 – 1.02
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.81

What It Means for Investors

With a selected WACC of 6.0%, Tsakos Energy Navigation Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.