WACC (Weighted Average Cost of Capital) Calculation Model - for a Group of Companies
Originally published: 10/05/2024 13:22
Publication number: ELQ-60940-1
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WACC (Weighted Average Cost of Capital) Calculation Model - for a Group of Companies

This model is created to calculate the WACC (Weighted Average Cost of Capital) for a group of companies.

Description
The free excel model is created to calculate the WACC (Weighted Average Cost of Capital) for a group of companies. The WACC for each entity is calculated based on CAPM (Capital Asset Pricing Model). The group WACC is then calculated as the average between 2 approaches.

The first approach calculates the WACC by considering the proportion of each company's total assets in relation to the total assets of all the companies included in the calculation. This method takes into account the relative size of each company within the group when determining the overall WACC.
The second approach uses the same methodology as the first approach, but instead of considering total assets, it focuses on the total equity of the company.
For every company, the user needs to fill in the debt financing and gather financial data such as the risk-free rate, risk premium, beta, interest rate, corporate tax rate, and projected inflation rate for the local currency in each location or country.
Additionally, the user needs to input the total assets and equity for each company. Please only input data in the green cells.

This is a highly versatile, very sophisticated financial model template, and is also user-friendly.

If you have any inquiries, modification request or other requests of assistance to customize the model template for your business case please contact us here: https://www.eloquens.com/channel/ecorporatefinance

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