Weighted Average Cost of Capital (WACC) Explained

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  • čas přidán 11. 09. 2024

Komentáře • 14

  • @RyanOConnellCFA
    @RyanOConnellCFA  Před rokem +1

    💾 Download Free Excel File:
    ► Grab the file from this video here: ryanoconnellfinance.com/product/weighted-average-cost-of-capital-wacc-excel-template/
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  • @bobagorof
    @bobagorof Před rokem +1

    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.

    • @RyanOConnellCFA
      @RyanOConnellCFA  Před rokem

      I'm really glad you got so much value out of this video! It is my pleasure

  • @JamesManicom
    @JamesManicom Před 9 měsíci +1

    Fantastic video Ryan. Very easy to follow and understand.

  • @ivan_leung_aus
    @ivan_leung_aus Před rokem +1

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

  • @manuellugo7484
    @manuellugo7484 Před 4 měsíci

    Awesome❤

  • @AZ-vw8gn
    @AZ-vw8gn Před 2 lety +1

    Thank you

  • @chdanish6568
    @chdanish6568 Před 2 lety +1

    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.

    • @RyanOConnellCFA
      @RyanOConnellCFA  Před 2 lety +1

      You're welcome! Intuitively, I think you'd include the percentage of funding that comes from preferred equity and the cost of preferred equity. Essentially, the WACC formula would change from a two component formula to a three component formula

  • @abuhsaintishnchuo
    @abuhsaintishnchuo Před 5 měsíci

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

    • @FaithOlasehinde
      @FaithOlasehinde Před 4 měsíci +1

      add the retained earnings to the equity.. it should be part of the equity of the company.