WACC Calculator
Calculate the weighted average cost of capital for any company. WACC is the discount rate used in DCF analysis — it determines how much future cash flows are worth today.
WACC = (E/V × Re) + (D/V × Rd × (1 − Tc))
Market value of equity (E)
Market value of debt (D)
Pre-tax yield on debt (Rd)
Default: 21% (US federal rate)
Enter Market Cap, Total Debt, Cost of Equity, and Cost of Debt above to calculate WACC.
Interpreting WACC
Low Cost of Capital
Typical of investment-grade utilities, large-cap financials, and companies with stable cash flows and low leverage risk. Implies higher intrinsic value in DCF models.
Moderate Cost of Capital
Common for established technology companies, consumer discretionary, and mid-cap industrials. Reflects balanced capital structure and moderate growth expectations.
High Cost of Capital
Typical of small-caps, high-growth startups, or heavily leveraged companies. Compresses DCF valuations significantly — each percentage point increase reduces intrinsic value estimates materially.
Use WACC in a full valuation
WACC is the discount rate in DCF analysis. Combine it with an intrinsic value estimate to find where a stock may be trading relative to fair value — then screen for opportunities.
Go deeper: multi-method valuation
No single model captures fair value. Triangulate with DCF, Graham Number, Margin of Safety, and asset-based methods to build a complete valuation picture.
Learn more about how Equity Rank weights these models in the methodology or browse the full free tool directory. Still have questions? See the FAQ.
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Frequently asked questions
Common questions about WACC and how to use this calculator.
This tool is for research and educational purposes only. It does not constitute financial advice. All outputs depend entirely on user-provided inputs and simplified financial models — results are estimates, not guarantees. Equity Rank is not a registered investment adviser. Consult a qualified financial professional before making investment decisions.