Complete WACC & Enterprise Value Model

This is a free excel template to calculates the weighted average cost of capital and the enterprise value with target price.

by iNvestments Consulting
Strategy and Investments Analysis from ScratchFollow

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Description
The free excel template help the user to calculates the weighted average cost of capital for the long-term funding used by the firms, supplied by its creditors (or lenders) and the owners (or shareholders),


A firm’s Weighted Average Cost of Capital (WACC) represents its blended cost of capital across all sources, including common shares, preferred shares, and debt. The cost of each type of capital is weighted by its percentage of total capital and they are added together. This guide will provide a detailed breakdown of what WACC is, why it is used, how to calculate it, and will provide several examples.


The enterprise value (which can also be called firm value or asset value) is the total value of the assets of the business (excluding cash).
When you value a business using unlevered free cash flow in a DCF model, you are calculating the firm’s enterprise value.
If you already know the firm’s equity value, as well as its total debt and cash balances, you can use them to calculate enterprise value.


If equity, debt, and cash are known, then you can calculate enterprise value as follows:
EV = (share price x # of shares) + total debt – cash
Where EV equals Enterprise Value. Note: If a business has a minority interest, that must be added to the EV as well. Learn more about minority interest in enterprise value calculations.
or
Calculate the Net Present Value of all Free Cash Flow to the Firm (FCFF) in a DCF Model to arrive at Enterprise Value.

This Best Practice includes
1 Excel Sheet