Terra Clean EnergyTCEFF WACC % is 12.54% as of Jun. 27, 2026, which is 88% above its 10-year median of 6.67. The stock has 1 warning sign investors should review. Among 184 Other Energy Sources companies, Terra Clean Energy ranks better than 92.39% on this metric.
As of today (2026-06-27), Terra Clean Energy's weighted average cost of capital is 12.54%%. Terra Clean Energy's ROIC % is -46.59% (calculated using TTM income statement data).
Terra Clean Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Terra Clean Energy (OTCPK:TCEFF) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Terra Clean Energy's weighted average cost of capital is 12.54%%. Terra Clean Energy's ROIC % is -46.59% (calculated using TTM income statement data).
Terra Clean Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Terra Clean Energy WACC % Historical Data
* Premium members only.
The historical data trend for Terra Clean Energy's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Uranium subindustry, Terra Clean Energy's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Terra Clean Energy WACC % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Terra Clean Energy's WACC % distribution charts can be found below:
* The bar in red indicates where Terra Clean Energy's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Terra Clean Energy's market capitalization (E) is $4.031 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Terra Clean Energy's latest one-year quarterly average Book Value of Debt (D) is $0 Mil.
a) weight of equity = E / (E + D) = 4.031 / (4.031 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (4.031 + 0) = 0
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 3.5415%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Terra Clean Energy's beta is 1.4996.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 3.5415% + 1.4996 * 6% = 12.5391%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Terra Clean Energy's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $0 Mil.
Cost of Debt = -0 / 0 = %.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / -1.164 = 0%.
Terra Clean Energy's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
1
*
12.5391%
+
0
*
%
*
(1 - 0%)
=
12.54%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Terra Clean Energy (TCEFF) has a WACC % of 12.54% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Terra Clean Energy and its competitors. This is 88% above median its historical median of 6.67. Over the past decade, Terra Clean Energy's WACC % has ranged from 1.76 to 33.16. According to the industry distribution chart, Terra Clean Energy ranks #14 out of 184 companies in the Other Energy Sources industry, placing it in the top 7.6%.
Is Terra Clean Energy's WACC % too high?
Terra Clean Energy's current WACC % of 12.54% is 88% above median its 10-year median of 6.67. Over the past 10 years, this metric has ranged from a low of 1.76 to a high of 33.16. The Other Energy Sources industry median WACC % is 7.42. Terra Clean Energy's value of 12.54% is 69% above this industry median. Based on the distribution chart, Terra Clean Energy ranks #14 out of 184 companies in the Other Energy Sources industry, which is in the top quartile — a strong position relative to peers.
How does Terra Clean Energy's WACC % compare to UEC and LEU?
According to the Other Energy Sources industry distribution chart, Terra Clean Energy ranks #14 out of 184 companies for WACC %. This places Terra Clean Energy in the top 8% of its industry — outperforming the majority of peers. The industry median WACC % is 7.42. Terra Clean Energy's value of 12.54% is 69% above this benchmark. Historically, Terra Clean Energy's own WACC % has ranged from 1.76 to 33.16 over the past decade. While the company's 10-year median is 6.67 vs. the industry median of 7.42, Terra Clean Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Other Energy Sources company?
The median WACC % among Other Energy Sources companies is 7.42, based on 184 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Terra Clean Energy's current WACC % of 12.54% is 69% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Terra Clean Energy and its competitors. For the Other Energy Sources industry, the median WACC % is 7.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terra Clean Energy's current WACC % is 12.54%, which is 88% above median its own 10-year median of 6.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terra Clean Energy stock overvalued right now?
Terra Clean Energy (TCEFF) has a current WACC % of 12.54%. The current WACC % is 12.54%, which is 88% above median its 10-year median of 6.67 and 69% above the Other Energy Sources industry median of 7.42. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Terra Clean Energy (TCEFF), the current WACC % is 12.54% as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Terra Clean Energy Corp is a developer of a uranium exploration and development platform designed to advance high-potential uranium resources for sustainable energy production. The company offers strategically located projects in Canadas Athabasca Basin and past-producing mines in the United States, enabling energy producers to secure a reliable and long-term uranium supply for the growing clean energy market. The company project includes Powder Mountain, South Falcon East and Prospector Freedom Mines.
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