Select country and sector — Damodaran's ERP and beta load automatically. Override any input with your own figures: term sheet rate, audited D/E, analyst beta. Results update instantly.
WACC = Ke × E/(D+E) + Kd×(1−t) × D/(D+E) Ke = Rf + βL × ERP · βL = βU × [1+(1−t)×D/E] · EV ≈ EBITDA × sector multiple or FCF / WACC
WACC BuilderDamodaran Jan 2026
1
Country & ERP
Country of operation
Moody's—Total ERP—Corp. tax—
Own input mode. Enter your ERP estimate directly. Reference: mature market ERP = 4.23% (Damodaran Jan 2026).
Risk-free rate 10Y govt bond
%
EUR 3.8% · USD 4.2% · GBP 4.1%
Equity risk premium auto-filled
%
↑ Damodaran Jan 2026
2
Sector & Beta
Sector
β unlevered—Sector D/E—Firms—
Own input mode. Enter your beta estimate directly — from your financial advisor, Bloomberg, or a bottom-up analysis.
Unlevered beta (βU) auto-filled
↑ Damodaran Jan 2026
Relevered beta (βL) computed
βU × [1+(1−t)×D/E]
Relevered to your capital structure (Section 3).
· Private company mode active: total beta applied (÷ 0.55 correlation).
3
Capital Structure
Debt weight — D/(D+E)
30%
Or enter directly syncs with slider
% debt
Absolute mode. Enter balance sheet figures. The tool computes D/(D+E) automatically.
Net debt from last accounts
k
Equity (book or mkt) market cap or BV
k
Computed: — debt · — equity
→ D/E ratio: —
Pre-tax cost of debt estimate
%
Rf + credit spread. Typical: Rf + 1.5% (IG) to Rf + 3.5% (sub-IG). Enter your bank term sheet rate to override.
Corporate tax rate from country
%
Auto-filled from country. Override with your effective rate.
Private company?
4
Valuation Bridge
Optional
Enter your EBITDA to estimate Enterprise Value — via the sector multiple from Damodaran and via a simplified DCF using the WACC above.
EBITDA last 12 months
k
Long-term growth rate for DCF terminal
%
EBITDA → FCF conversion 55%
Typical: 45–65% (after capex, working capital, taxes). Adjust for your sector.
Data Sources
1.Equity Risk Premium by country — Damodaran, NYU Stern, January 2026. Moody's sovereign ratings + equity volatility adjustment. 150+ countries.
2.Unlevered beta by sector — Damodaran, NYU Stern, January 2026. US dataset. Beta corrected for cash. 90+ sectors.
3.EV/EBITDA sector multiples — Damodaran, NYU Stern, January 2026. Positive-EBITDA firms, trailing 12-month data.
4.Risk-free rates — Benchmark 10-year government bonds (ECB, US Treasury, BoE). Updated manually; verify current rates before use.
5.Hamada equation — Standard relevering formula: βL = βU × [1 + (1−t) × D/E]. Private total beta approximated using 0.55 correlation divisor.
Not financial advice. Validate with a qualified financial advisor before use in any transaction or investment decision.
Cost of Capital · WACC Estimate
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