Weighted Average Cost of Capital (WACC) Excel Model Template

(2 customer reviews) New Template!

This Weighted Average Cost of Capital Template will guide you through calculation of WACC based on a company’s capital structure, cost of equity, cost of debt, and tax rate.

Free!

Vendor: Corporate Finance Institute®

About This Weighted Average Cost of Capital (WACC) Excel Model Template

Weighted average cost of capital (WACC) is the required return a company should generate for the risk associated with investing capital in the company. Another way of looking at WACC is to see it as the minimum rate of return an enterprise should earn in order to create value for its investors. In effect, it represents the opportunity cost of the firm.

The WACC formula used by the calculator in the Excel template is:

WACC = (E/V x Re) + ((D/V x Rd) x (1 – T))

Where:

E = market value of the firm’s equity (market cap)
D = market value of the firm’s debt
V = total value of capital (equity plus debt)
E/V = percentage of capital that is equity
D/V = percentage of capital that is debt
Re = cost of equity (required rate of return)
Rd = cost of debt (yield to maturity on existing debt)
T = tax rate

2 reviews for Weighted Average Cost of Capital (WACC) Excel Model Template

  1. Avatar

    Alistair Williams

    Nice but very basic, gets the job done

  2. Justin @ Getting People Right

    Justin M.

    Great, saved me a lot of time

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