Available modeling methods
| Method / input | Behavior |
|---|---|
| Cost of equity | Risk-free rate + beta × equity risk premium + country, size and other premiums. |
| After-tax debt cost | Pre-tax debt cost × (1 − tax rate). |
| Capital structure | Debt and equity market values, or an explicit debt weight with complementary equity weight. |
Builder versus override
Open WACC within DCF. A positive direct override is used while present; clear it to use the builder. The UI identifies the active mode and calculated component costs. Required market inputs start unset rather than being inferred from a generated company. The initial 10% override is explicitly illustrative.
Check the weighting
With cost of equity of 10%, pre-tax debt cost of 5%, tax of 20% and debt weight of 25%, WACC is 8.5%. Change the debt weight and review the discount factors and sensitivity. This does not automatically change the operating model’s debt or interest schedule.
Open in the full valuation model ↗
Documents the current implemented behavior. Example assumptions are not market data.