You are on page 1of 3

Weighted Average Cost of Capital (WACC) Calculator Strictly Confidential

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/

© 2019 CFI Education Inc.


All rights reserved.  The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected under international copyright and trademark laws.  
No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any form by any means, including photocopying, recording, or other electronic or mechanical methods,
© Corporate Finance Institute®. All rights reserved.
WACC Calculator

WACC Calculation Comparabl


Capital Structure Company
Debt to Total Capitalization 29.00% Company A
Equity to Total Capitalization 71.00% Company B
Debt / Equity 40.85% Company C
Company D
Cost of Equity Company E
Risk Free Rate 2.50% Median
Equity Risk Premium 6.00%
Levered Beta 1.19
Cost of Equity 9.62%

Cost of Debt
Cost of Debt 7.50%
Tax Rate 31.00%
After Tax Cost of Debt 5.18%

WACC 8.33%

This file is for educational purposes only. E&OE

Corporate Finance Institute®


https://corporatefinanceinstitute.com/
Comparable Companies Unlevered Beta
Levered Beta Debt Equity Debt/Equity Tax Rate Unlevered Beta
1.23 520 1,125 46.22% 31% 0.93
1.31 500 868 57.60% 30% 0.93
1.15 460 788 58.41% 29% 0.81
1.12 600 1,125 53.33% 33% 0.83
1.25 450 900 50.00% 30% 0.93
1.23 53.33% 0.93

You might also like