Weighted Average Cost of Capital (WACC) Explained

Ryan O'Connell, CFA, FRM explains how to calculate Weighted Average Cost of Capital (WACC) using Excel.

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Chapters:
0:00 - Debt Funding and Equity Funding Explained
0:57 - Making Debt and Equity Assumptions
2:24 - Calculate Weighted Average Cost of Capital (WACC)

Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

[RyanOConnellCFA]

💾 Download Free Excel File:

🎓 Tutor With Me: 1-On-1 Video Call Sessions Available
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[bobagorof]

Thanks for this. This explanation has helped me to understand not only what WACC is but also what it might be used for. I've seen the formula before and without an explanation of where it comes from, but it makes sense now.

[JamesManicom]

Fantastic video Ryan. Very easy to follow and understand.

[chdanish]

Appreciate the tutorial Ryan. What about the cost of preferred stock? I just did a project on calculating the WACC of two companies and had to gather all the data from Yahoo Finance, Market Watch etc.

[abuhsaintishnchuo]

Thank you for this, how do we handle a question with retakned earnings?

[ivan_leung_aus]

Thank you! You've done it again!!!!