Grizzly Bulls

WACC Calculator

Build a transparent debt-and-equity cost of capital from your own market-value weights, CAPM assumptions, debt cost, and marginal tax rate. Load a supported ticker to carry canonical company context into the valuation workflow.

Company context

Ticker lookup only prefills the supported canonical equity market value. Debt, beta, borrowing cost, tax rate, and market assumptions remain editable inputs.

Capital and return assumptions

Current or target market value of common equity.
Interest-bearing debt market value. Enter 0 for an all-equity case. Ticker lookup does not infer this value.
Your chosen risk-free-rate assumption. The starter value is not company data.
Your chosen equity beta estimate. Ticker lookup does not manufacture a beta estimate.
Expected market return above the selected risk-free rate. The starter value is an editable modeling assumption.
Your estimate of the marginal borrowing cost. Ticker lookup does not infer it from reported interest expense.
Used only for the simplified interest tax-shield adjustment; this remains your assumption.

Ticker lookup changes only the supported equity market-value input. Rate, beta, premium, financing, and tax assumptions stay visible because different reasonable choices can produce materially different WACC estimates.

Cost of capital

7.857%Weighted average cost of capital
9.2%CAPM cost of equity
4.5%After-tax cost of debt
71.429%Equity weight
28.571%Debt weight
0.4×Debt / equity market value

WACC is an estimate built from assumptions, not a directly observed market fact. A company-wide WACC also is not automatically the right discount rate for every project, business unit, country, currency, or cash-flow stream.

Carry this 7.857% WACC into Stock Valuation Lab → The valuation page receives it only as an editable starting assumption.

How the estimate is built

ComponentRateCapital weightWACC contribution
Common equity9.2%71.429%6.571 pp
Debt after tax4.5%28.571%1.286 pp
CombinedWACC100%7.857%

CAPM contributes 4.95 percentage points above the entered risk-free rate, producing a 9.2% cost of equity. The capital weights use the market values you entered, not book values or net debt.

Debt tax-shield illustration

8.286%Pre-tax blended capital cost
0.429 ppWeighted reduction from entered tax shield
$24MIllustrative annual pre-tax debt cost
$6MIllustrative annual debt tax shield
$18MIllustrative annual after-tax debt cost

This assumes the entered pre-tax debt cost applies to the entered debt market value for a full year and that the entered marginal tax rate applies to that interest cost. It does not determine whether an issuer can use every interest deduction in practice.

Use WACC as an explicit valuation assumption

WACC is commonly used as a discount-rate input for company valuation and capital budgeting, but the estimate depends on the capital structure and component cost assumptions selected. The Stock Valuation Labowns Grizzly Bulls' DCF and reverse-DCF workflows. This page does not duplicate those valuation models.

This version covers common equity and debt only. It does not add preferred stock, convertibles, leases, pensions, minority interests, excess cash adjustments, synthetic credit ratings, bottom-up beta estimation, or automatic unlevering and relevering.

Method sources