Tutor Perini Corp (TPC) WACC Analysis

As of December 15, 2025, Tutor Perini Corp (TPC) carries a Weighted Average Cost of Capital (WACC) of 10.6%. WACC reflects the blended rate Tutor Perini Corp must pay to both equity and debt holders.

Within that, the cost of equity is 9.9%, the cost of debt is 7.3%, and the effective tax rate is 23.3%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 1.3 – 1.4
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.15

What It Means for Investors

With a selected WACC of 10.6%, Tutor Perini Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.