Calculate WACC WACC Formula FAQs About That\'s WACC! The Web\'s Best WACC Calcul
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Question
Calculate WACC
WACC Formula
FAQs
About
That's WACC!
The Web's Best WACC Calculator
Enter the ticker symbol for any stock traded on the NYSE, AMEX, or NSDQ exchanges in the area below to calculate the firm's Weighted Average Cost of Capital (WACC).
Ticker Symbol:
You have searched for WMT - Wal-Mart Stores, Inc.
Their WACC = 2.35%
Because
The figures above were calculated using the following averages from the Income Statement and Balance Sheet:
The Weighted Average Cost of Capital (WACC) is one of the most important measures in corporate finance. According to Wikipedia
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.
However, actually CALCULATING a firm's WACC requires that you know a firm's cost of debt (rD), corporate tax rate (Tc), total Debt and Equity, as well as the firm's cost of equity (rE) - which in turn requires that you know a firm's Beta () and the risk-free (rf) and market return (rM) rates. Whew!
Fortunately, the WACC calculator at That's WACC does all the hard work for you. Enter a stock ticker symbol for any public company, and That's WACC pulls back 3 years of Income Statements and Balance sheet data to calculate Tax Rates, Debt, and Interest payments for the firm. We pull the firm's current market cap and Beta, and plug everything through the WACCULATOR ™ to get the firm's WACC.
And after we show you the raw figures we use to calculate WACC, we let you plug in your own numbers for key inputs to let you truly make the WACC your own.
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My question is, how do you find the total firm value? Given this information.
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Component Value(3 yr avg) Description rD 5.05% Estimated Cost of Debt (Interest/Debt) Tc 31.00% Estimated Tax Rate (Taxes/Pretax Income) D/V 33.68% Percentage of Financing from Debt (Debt/Enterprise Value) rE 1.77% Cost of Equity, per the CAPM Model:
rE = rf + (rM - rf) E/V 66.32% Percentage of Financing from Equity (Market Cap/Enterprise Value) Yiew my profile on Linked in
Explanation / Answer
Answer:
Total Value of Firm = Total Net Debt + Total Equity.
Net Debt of the Firm = Long Term Debt + Short Term Debt - Cash and Cash Equivalents.
Total Equity = Market Price per share * No. of Common Shares Outstanding.
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