WACC Calculator | Elite Valuation

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DCF Valuation · WACC Navigator

Calculate a supportable WACC without getting lost in the formula.

Enter your capital structure, choose how you want to determine cost of equity and cost of debt, and receive a transparent WACC with the complete calculation trail.

Guided InputsOnly the fields relevant to your method
Beta & CSRPTransparent adjusted-CAPM build-up
Debt TranchesWeighted cost of debt when loans differ
Audit TrailEvery component shown step by step

Before you start

This calculator is designed for an FCFF / enterprise-value DCF. Use values and rates that are consistent with the same valuation date, cash-flow currency and target capital structure.

1
Use market value or supportable fair value of equity, not book equity merely because it is readily available.
2
Use interest-bearing debt and a current pre-tax borrowing rate / market yield.
3
Apply the tax shield only to the extent it is expected to be usable.

Formula used

WACC = (E/V × Ke) + (D/V × Kd × (1 − T))

E = equity value, D = debt value, V = E + D, Ke = cost of equity, Kd = pre-tax cost of debt, T = applicable tax rate for the interest shield.

1

Capital Structure

Choose how you want to provide the company's mix of equity and debt.

For listed equity, market capitalisation is commonly used. For unlisted equity, use a supportable fair value / target capital structure consistent with the valuation purpose. Enter the full INR amount, not shorthand such as “10 Cr”.
Use current / market value of interest-bearing debt where available. If the company is debt-free, explicitly enter 0. A blank field is treated as incomplete. Enter the full INR amount, not shorthand such as “10 Cr”.
Calculated Capital Weights
Enter values above
Equity and debt weights will be calculated automatically.
For unlisted companies: Do not use the DCF equity value that this valuation is trying to determine. Use a supportable market / fair capital structure or target Equity / Debt mix instead.
2

Cost of Debt

Enter one weighted average borrowing rate, or calculate it from multiple debt facilities.

Use the weighted average current pre-tax borrowing rate or market yield across interest-bearing debt.
3

Tax Shield

Enter the marginal tax rate expected to apply to incremental taxable income and the interest deduction.

Include surcharge and cess where relevant. Enter 0% if the interest tax shield is not expected to be usable. A delayed or limited tax shield should be modelled separately.
Important: The calculator applies the tax shield immediately using Kd × (1 − T). It does not model loss carry-forwards, interest-deduction limitations or a delayed shield.
4

Cost of Equity

Use a directly determined Cost of Equity, or build it transparently using Risk-Free Rate, Expected Market Return, an industry-derived or manually entered Beta and CSRP.

Use a default-free rate consistent with valuation date, cash-flow currency and duration.
Enter the expected / required broad market return consistent with the market and currency used for the Valuation.
Derived Equity Risk Premium (Rm − Rf)
-
ERP will be calculated automatically as Expected Market Return minus Risk-Free Rate.
Determine Levered Beta (β) Choose the relevant Damodaran India industry Beta or enter your own Beta.
Damodaran India · Jan 2026
Type any broad keyword, then click the closest operating industry from the matching India results. The published sector Levered Beta is shown for reference; WACC uses the cash-adjusted unlevered Beta re-levered to the subject company.
Search across the embedded Damodaran India industry dataset.
Companies in Damodaran Industry Set-
Published Sector Levered Beta-
Operating Unlevered Beta-
Subject Levered Beta Used-Select an industry to calculate Beta.
Method: Select an industry. The tool uses Damodaran's unlevered Beta corrected for cash as the operating Beta, then relevers it to the subject company's D/E and tax rate.
Source: Aswath Damodaran, NYU Stern, Betas by Industry — India, updated 5 January 2026. India-only embedded snapshot: the industry beta table is stored directly in this calculator, so beta selection works locally without loading an external workbook. View source workbook.
Default to 0%. Add a CSRP only where a separate company-specific risk adjustment is supportable and the same risk is not already reflected in Beta, forecast cash flows, scenario probabilities or another premium.
Adjusted CAPM Cost of Equity
-
Ke = Rf + (β × ERP) + CSRP
CSRP discipline: CSRP is not a mechanical plug. Use 0% unless a separate adjustment is supportable. Avoid double counting risks already reflected in Beta, cash flows, scenario probabilities or other assumptions.
Weighted Average Cost of Capital
-
Indicative discount rate for FCFF / enterprise-value DCF cash flows.
Cost of Equity Used-
Levered Beta Used-
CSRP Used-
After-tax Cost of Debt-
Equity Weight-
Debt Weight-

How your WACC is built

E/V × Ke+ D/V × Kd × (1 − T)= -
Equity contribution to WACC-

Equity weight × cost of equity.

Debt contribution to WACC-

Debt weight × after-tax cost of debt.

Calculation audit trail

WACC sensitivity

Shows the effect of ±1.0% changes in Cost of Equity and pre-tax Cost of Debt while keeping the entered capital structure and tax rate unchanged.

How to use the result

Use WACC with FCFF

WACC is generally paired with cash flows before financing to arrive at enterprise value.

Do not mix dates or currencies

Risk-free rate, expected market return, derived ERP, borrowing costs and capital structure should be consistent with the same valuation date and cash-flow currency.

Do not optimise leverage mechanically

Changing debt weight can also change beta, borrowing spreads, financial risk and tax-shield usability.

Calculation boundaries: This tool models common equity and interest-bearing debt using a single-period WACC framework. It does not model preferred securities, changing leverage through the forecast, debt spreads that change with leverage, or delayed/capped tax shields. It is a calculation aid, not an independent source for market inputs. The Damodaran industry Beta module uses the India-specific workbook. It refreshes from the official India dataset when available and can use a manually loaded India workbook if browser access is blocked.

Need a defensible WACC for a formal Valuation?

Elite Valuation can help benchmark beta, capital structure, equity risk premium, borrowing costs and company-specific adjustments for a transaction or regulatory Valuation.

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