Weighted Average Cost of Capital (WACC) Calculator Template
Originally published: 25/08/2022 15:24
Publication number: ELQ-77063-1
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Weighted Average Cost of Capital (WACC) Calculator Template

This Template is to provide users with a ready-to-use calculator of Weighted Average Cost of Capital (WACC) to discount the free cash flow.

Description
This Template is to provide users with a ready-to-use calculator of Weighted Average Cost of Capital (WACC) in purpose of discounting the free cash flow when performing DCF valuation analysis.


The key-driven factors of this parameter WACC are 1) cost of debt, 2) cost of equity, and 3) leverage ratio of the target.


The model allows users to understand how the WACC is generated by these three factors and how the variation of these factors affects the WACC result.


As the WACC is a crucial parameter representing the required return of investor and affecting the valuation result, the good study on it is necessary in the process of project and investment valuation analysis.


The model is ready-to-use, fully customizable, and dynamic. All inputs in color BLUE could be fine-tuned according to users’ real circumstances.


The template is greatly user-friendly either for professional analysts or for users with little experience in financial modeling since its simply design pattern and easy-to-follow logic.


To guarantee the users satisfaction, the model does not place any complicated formulas or VBA code. The structure and content have been created following the Best Financial Modeling Principles and considering the high level of flexibility and user-friendly in priority.


Please feel no hesitation in contacting us if you experience problems using the models provided.


In addition, if you need a customized model for your specific business, please let us know, and we would be happy to help you with this.

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