Actually i was punching in the wrong beta, so my wacc actually works out to 9.6%, which is pretty close to the 10% i was using, and i'll round that up to 10% anyways. However, this is something I've struggled with since i see the guys around me using a 10% discount rate for every company the evaluate - i think this is too punitive for stable companies with dependable FCF generation

In the second case you need to use a wacc that reflects the risk associated with the set of assets you are acquiring (probably using betas and debt to equity ratios of a set of companies that closely reflect a stand alone operation similar to the acquired assets).


Wacc Nedir


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