Overview
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
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Great, saved me a lot of time
Nice but very basic, gets the job done