WACC from Industry Peers

This simple tool allows you to estimate the Weighted Average Cost of Capital (WACC) of your company using current market data on publicly traded firms in the U.S. to estimate the typical risk of firms in the same industry (unlevered beta from industry peers). The raw data to estimate the unlevered beta are from Damodaran's website.
 

Key features:

  • You can adjust the calculation with your currency's risk-free rate of return and market risk premium to estimate the typical WACC of firms with similar risk in your currency (Typical Industry WACC).

  • You can include information about your firm's financing policy to obtain a firm-specific WACC estimate.

  • You can make the WACC more suitable for small and medium sized enterprises (SMEs) by including an additional risk premium for the lack of illiquidity, using the approach proposed by Loderer and Waelchli (2010).