Calculate the Weighted Average Cost of Capital (WACC) based on industry-standard financial models
Determines risk-free rate and market risk premium (Fernandez, 2024)
Determines the unlevered beta for the calculation (Damodaran, January 2025, Global Betas, Effective Tax)
Determines the marginal tax rate for cost of debt calculation (Damodaran, January 2025)
Company size in millions of USD determines the size premium (Duff & Phelps, 2023)
Determines the debt spread premium (Damodaran, January 2025)
Earnings Before Interest and Taxes
Annual interest payment
Determines debt rating thresholds
Percentage of financing through equity
Percentage of financing through debt
Rate of return on a default-free investment in the same currency and time horizon
Business risk without financial leverage effect
Excess return of the market over the risk-free rate
Additional premium based on company size
Company-specific or other additional risk factors
Country-specific base rate for debt calculations
Additional yield over the risk-free rate (debt premium)
Marginal tax rate for the jurisdiction