Help on WACC Calculation

ucubic

Junior Member
Joined
Feb 27, 2014
Messages
21
Reaction score
0
Anyone knws how to calculate a company's WACC?
From what i know the formula is
WACC= [Re x E/E+D] [Rd x D/E+D (1-T)]
Re = Cost of equity
Rd = Cost of debt
E = Market value of the firm’s equity
D = Market value of the firm’s debt
T = Corporate tax rate

I can't find the figure in the annual report.:s11:
 

Raider04

Master Member
Joined
Mar 7, 2004
Messages
3,159
Reaction score
0
Anyone knws how to calculate a company's WACC?
From what i know the formula is
WACC= [Re x E/E+D] [Rd x D/E+D (1-T)]
Re = Cost of equity
Rd = Cost of debt
E = Market value of the firm’s equity
D = Market value of the firm’s debt
T = Corporate tax rate

I can't find the figure in the annual report.:s11:

Market value of the firm’s equity is market capitalisation
Market value of the firm’s debt = Approx Book Value of Liabilities and throw in some discounting.
 

lee_tired_sheep

Arch-Supremacy Member
Joined
Aug 25, 2010
Messages
10,057
Reaction score
0
It won't be in the annual report. May be in the announcement for bond issues. Equity yield is straightforward. Long story short just get it from a Bloomberg terminal.
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ Forums. Forum members and moderators are responsible for their own posts. Please refer to our Community Guidelines and Standards and Terms and Conditions for more information.
Top