SF WACC Calculator

1 downloads
Google Sheets & Excel
sheetsfinancevaluationdcfwacc
SF WACC Calculator screenshot

Overview

Work out a company's weighted average cost of capital (WACC) from live market and financial statement data, ready to use as the discount rate in a DCF.

What's inside

  • Company data: market cap, total debt, beta, interest expense and effective tax rate (TTM), pulled automatically for the ticker you choose.
  • WACC build: each step laid out so you can check it:
    • Cost of equity with CAPM (risk-free rate + beta × equity risk premium)
    • Pre-tax and after-tax cost of debt
    • Market-value weights of equity and debt
  • Sensitivity grid: WACC across a range of risk-free rates and equity risk premiums.
  • 5-year history: the company's implied cost of debt and effective tax rate each year, with a chart.

You set the risk-free rate and equity risk premium in the blue cells. If you already have a cost of debt (such as a bond yield) or a tax rate you prefer, enter it in the optional override cells.

If a company doesn't report interest expense, the template uses its average implied cost of debt from the last 5 years instead.

Good for

  • Choosing a discount rate for the SF DCF Valuation Template or your own model
  • Comparing the cost of capital across companies

How to use it

  1. Click Copy to Google Sheets to save your own copy.
  2. Open Extensions → SheetsFinance and make sure you're connected.
  3. Type a ticker such as AAPL into cell B4.
  4. Adjust the risk-free rate and equity risk premium in B9 and B10 to suit your view.

Functions used

The SheetsFinance functions this template is built with. Read the docs to adapt it.