If you’ve ever built a DCF model, evaluated an investment, or valued a business, then you know one thing:
👉 The accuracy of your valuation depends heavily on the WACC.
That’s why I’ve pulled together a comprehensive WACC model template—with everything packed into one place.
This Excel-based tool helps you:
✅ Calculate cost of equity and cost of debt
✅ Set your capital structure based on current and target weights
✅ Incorporate beta adjustments using comparable companies
✅ Reflect market and company-specific risks in one clean sheet
🔍 What’s Inside the Model?
Here are the key terms built directly into the template, ready for you to plug and play:
🧮 Cost of Equity
- Risk-Free Rate (RfR)
- Equity Risk Premium (ERP)
- Levered Beta & Unlevered Beta
- Country Risk Premium (CRP)
- Size and Specific Risk
Formula used: Ke = RfR + Bc * ERP + Crp + Srp
🧾 Cost of Debt
- Pre-Tax Rate
- Tax Rate
- Post-Tax Cost of Debt
Formula used: Kd = Km × (1 – Tc)
🧱 Capital Structure
- Total Capital
- Equity Weight
- Debt Weight
- Target D/E Ratio
- Market Cap vs. Book Debt
📈 WACC Calculation
WACC = Ke × E/(D+E) + Kd × D/(D+E)
💡 Why This Template Matters
Without a robust WACC calculation, you’re flying blind when it comes to:
🔸 Valuing startups vs. mature businesses
🔸 Running NPV scenarios
🔸 Discounting forecasted free cash flows
🔸 Comparing capital structure strategies
🔸 Assessing investor returns and risk premiums
📥 Want the full editable version?
👉Free Excel Download
Let’s stop estimating and start modeling with precision.
