WACC Calculator

WACC is the blended return a company has to earn to keep everyone who funds it whole. Enter the market value of equity and debt, the cost of each and the corporate tax rate, and you get the weighted rate along with the two weights, the after-tax cost of debt and what each side contributes. A second mode builds the cost of equity from CAPM first, out of a risk-free rate, a beta and a market risk premium. Market values and the cost of equity are estimates rather than quoted prices, so the answer is a range and not a single figure.

Calculator Type

Use this when you already have a cost of equity.

Share price times shares outstanding, not the balance sheet figure.
Interest-bearing debt. Book value is the usual stand-in when the debt is not traded.
The pre-tax rate the company borrows at today.
The marginal rate. Enter 0 if interest is not deductible.
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Builds the cost of equity as Rf + beta x market risk premium first.

Usually a government bond yield matched to the horizon.
How much the share moves with the market. 1 means it moves with it.
Expected market return minus the risk-free rate, not the market return itself.
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