What is WACC - Weighted Average Cost of Capital

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Learn to Invest - Investors Grow

5 жыл бұрын

Weighted average cost of capital (WACC) is a way to measure the required rate of return of a company. Companies can use it to measure the profitability of a project. Investors can use it in something like discounted cash flow.
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Пікірлер: 194
@ScoutyBoyO
@ScoutyBoyO 5 жыл бұрын
in the formula, the equity portion (at 3.25 min), do you mean R instead of D? You have r being the required rate of return. Great video.
@LearntoInvest
@LearntoInvest 5 жыл бұрын
You're absolutely correct. I apologize for that. It should have been r not d. I said required rate of return, but for some reason, I put d
@waltersalvatore2055
@waltersalvatore2055 2 жыл бұрын
instablaster...
@Thomas-ow2bm
@Thomas-ow2bm 4 жыл бұрын
how is that you can explain these things better than my old MBA profs? how is this possible? I mean seriously, a person drops a 100k on an mba and then finds better sources on youtube. wtf. edit: well done, keep it up, thank you
@mehdiserghini6240
@mehdiserghini6240 3 жыл бұрын
i'm in the same case with the same feeling
@MisterKelisi
@MisterKelisi 2 жыл бұрын
I agree
@daredevil1189
@daredevil1189 2 жыл бұрын
Yeah. Sad.
@oliviat978
@oliviat978 4 жыл бұрын
My corporate finance lecturer for my master's didn't explain this even half as good as you did! thank you so much!
@ngalawena
@ngalawena 4 жыл бұрын
This is better explained than my Harvard mba professors
@cafiveohsrockbandremix9254
@cafiveohsrockbandremix9254 2 жыл бұрын
I love that you're able to explain WACC better in a 6:30 video than my Intermediate Finance textbook can in 40+ pages. Thank you!
@giantsquidy3491
@giantsquidy3491 4 жыл бұрын
Thank you so much. I am in an MBA program and came from a very non-math undergraduate field. This video made everything clear. Profs and finance textbooks can be obscure and cryptic to those not of the math persuasion.
@jacintafeng6787
@jacintafeng6787 4 жыл бұрын
Perfectly explained, probably the best WACC explanation u can find on KZfaq
@mahmuttumenbatur5632
@mahmuttumenbatur5632 2 жыл бұрын
ı have been watching so many videos since yesterday to prepare myself for the exam, yours is the best one. simple, clear and to the point. well done and thank you
@levibowles5917
@levibowles5917 Жыл бұрын
You already got a sub from me. I can't tell you how long I was looking for someone to break this down exactly like you did. Thank you!
@olivercooper7556
@olivercooper7556 3 жыл бұрын
It’s incredible how such a complex perceived formula (or at least for me) can be explained so elegantly, what an incredible video!
@ibrahimmosavi2168
@ibrahimmosavi2168 2 жыл бұрын
You explained way better than my finance professor. Thank you!
@Springdaysbetter
@Springdaysbetter 4 жыл бұрын
Your explanations were so clear and perfectly understandable Thank you so much😊
@owend8956
@owend8956 4 жыл бұрын
The best tutorial for finance period.
@mmiller7203
@mmiller7203 2 жыл бұрын
I have read three sources on this subject when I should have just come watch your video.....thank you!
@nicoleluo6692
@nicoleluo6692 2 жыл бұрын
This is the best best WACC explanation i have never seen! 👍
@jakobherold26
@jakobherold26 4 жыл бұрын
Perfectly explained, thank you so much! Insane video!
@johnzarznia6814
@johnzarznia6814 5 жыл бұрын
This is a great video! I use WACC sometimes but I often just default to PE because its easier to use. But i wan to get my skills up enough to confidently use WACC.
@truenorth8996
@truenorth8996 4 жыл бұрын
Than you so much. I struggled all evening trying to undesrtand wacc formula.. now its'clear
@itsmohdiii3689
@itsmohdiii3689 4 жыл бұрын
amazing video very educational helped me refresh my memory before an interview as a finance student thank you ... guys this is a no bs video amazingly helpfull you sir get my like and subscription
@lukebarmakian3200
@lukebarmakian3200 2 жыл бұрын
I've been trying to learn DCF forever and this helped so much I know it's not actually about dcf but still thanks!
@marceljoshuakannampuzha522
@marceljoshuakannampuzha522 4 жыл бұрын
I have my finance exam in week and this video was absolutely perfect for my learning, thank you very much. Very helpful and broke down a complex topic into its simplest form.
@yash3714
@yash3714 4 жыл бұрын
Same, where u from
@donfrancis1246
@donfrancis1246 4 жыл бұрын
This video is so useful, I cannot thank you enough.
@panagiotisanastasopoulos107
@panagiotisanastasopoulos107 3 жыл бұрын
Half a semester of finance course in ~7 minutes!! Great work!
@connertaherian5166
@connertaherian5166 5 жыл бұрын
Your videos are very well crafted, thanks!
@giulianonigro774
@giulianonigro774 9 ай бұрын
Thank you for the video! It's really straightforward and useful to understand the meaning behind the wacc
@tinnguyen2219
@tinnguyen2219 5 жыл бұрын
Thank you so much for sharing this useful data! Greatly appreciated.
@jadeling4025
@jadeling4025 3 жыл бұрын
You are the best after I have been searching for this information online for 2 days and one night, seeing so many websites and google explanations. I especially like you telling me where can I find the average cost of debt.
@brilliant1863
@brilliant1863 5 жыл бұрын
I don't understand how your videos don't have more views. Great explanation as always!
@LearntoInvest
@LearntoInvest 5 жыл бұрын
Thanks!
@Beancounter2014
@Beancounter2014 5 жыл бұрын
Thanks for the video. It breaks WACC down in a way that is very understandable.
@pingislife2653
@pingislife2653 4 жыл бұрын
J, thank you for this lesson! It was very useful in better understanding your other video on how to value a stock using DCF.
@ChiChi-sw5iu
@ChiChi-sw5iu 5 жыл бұрын
Great explanation! Thank you for this!
@jiveon007
@jiveon007 3 жыл бұрын
Brilliantly explained. Thank you.
@JosueLopez-jx1th
@JosueLopez-jx1th 2 жыл бұрын
Very clearly explained - Thanks!
@sitijamilahnordin4487
@sitijamilahnordin4487 3 жыл бұрын
you explained better than my MOCA lecturer thank you so much bless you!!!!!!!!!!!!
@knithindas
@knithindas 5 жыл бұрын
Hey guys awesome work. Great work. Minimum visual effects made it better. Thanks
@connorgioiafigliu
@connorgioiafigliu 3 жыл бұрын
Really simple explanation, thank you!
@vutony4282
@vutony4282 4 жыл бұрын
Very easy to understand. Thanks.
@sweettwiss1194
@sweettwiss1194 3 жыл бұрын
My CFA length lecture is embarrassing compare to the info you give in one short video. Thank you so much!
@SurajSharma-kl9vl
@SurajSharma-kl9vl 5 ай бұрын
you explained it way better than my acct prof did , thank you
@delickkanyesigye9938
@delickkanyesigye9938 2 жыл бұрын
Finally I've found someone who has made more sense of this especially on the Real application of WACC. Wow
@AlexOus
@AlexOus 5 жыл бұрын
Thanks for your efforts! Great content!
@glee1669
@glee1669 2 жыл бұрын
THANK YOU for this! I understand WACC in general and how to compute, but I was missing a clear reasoning of how it was applied back to whether a company should pursue a project of an expected return rate of x%. 🙏!
@emmy8133
@emmy8133 3 жыл бұрын
Clear explanation! Thanks for sharing.
@TA-wc8zz
@TA-wc8zz 3 жыл бұрын
Way better than my professor. These professors complicate everything and spin it into some crazy concept.
@kevorod
@kevorod 2 жыл бұрын
Love this video format!
@herryfrd2740
@herryfrd2740 2 жыл бұрын
best explanation of WACC i've ever heard
@sandrajin915
@sandrajin915 4 жыл бұрын
Super helpful! Thank you so much for this video!
@ozandogacerdem8450
@ozandogacerdem8450 3 жыл бұрын
This is a great video I loved it. Thank you for sharing it. I learned a lot of information.
@yizhang6117
@yizhang6117 3 жыл бұрын
best ever explanation on WACC
@brayaran7370
@brayaran7370 4 жыл бұрын
Thank you for explaining this. This video is a JEWEL!
@GarrisonBush
@GarrisonBush 3 жыл бұрын
Thank you for helping me prepare for my quiz :)
@properoldschool
@properoldschool 4 жыл бұрын
Thanks so much, you made this easier to understand.
@thiquynhgiaongo2974
@thiquynhgiaongo2974 2 жыл бұрын
wow easier to understand than my 2-hour lecture, thank youu
@csjames69
@csjames69 5 жыл бұрын
Easy to understand while doing my MBA studies. Thanks.
@LearntoInvest
@LearntoInvest 5 жыл бұрын
I'm glad you liked it 😁
@printstudio9853
@printstudio9853 Жыл бұрын
woow..!!!...excellent piece of work bro...well done!!!
@nazimrahman
@nazimrahman 3 жыл бұрын
wonderfully explained
@willrogers7308
@willrogers7308 Жыл бұрын
brilliant video, thank you so much!
@aprilbrown9994
@aprilbrown9994 Жыл бұрын
I LOVE YOU!!! Thanks a million, it’s a damn shame my professor couldn’t break it down like this!!!!
@willfindjr
@willfindjr 3 жыл бұрын
Great video.. example used was very relevant and easy to understand. please keep the videos coming :-)
@jahorasvictornaibaho7467
@jahorasvictornaibaho7467 4 жыл бұрын
Great explanatuon... I understood about the using WACC
@DrSam86
@DrSam86 4 жыл бұрын
Thank u man..u help me greatly with mba much more than the horrible univ. books.
@kaushiks87
@kaushiks87 4 жыл бұрын
Great video. I just found an awesome channel for learning Finance Models!
@ludiogot143
@ludiogot143 3 жыл бұрын
Thank you for making it simple
@barberuddin4928
@barberuddin4928 4 жыл бұрын
Perfectly explained!
@abuh9400
@abuh9400 3 жыл бұрын
Nice method on explaining, like it
@filippoiguera3224
@filippoiguera3224 3 жыл бұрын
Fantastic! Thank you
@leabenn17
@leabenn17 5 жыл бұрын
Thank you. This will help for my exam
@cassiusbraganza4658
@cassiusbraganza4658 Жыл бұрын
Wow, Amazing video bro!
@tatendampwanyiwa5544
@tatendampwanyiwa5544 4 жыл бұрын
thank you for video. it is very helpful.
@raishutalks8216
@raishutalks8216 3 жыл бұрын
Thank you Jimmy
@alainat6444
@alainat6444 4 жыл бұрын
Thank-you!!!!!!!!!! I understand!
@andreeamorgociu2541
@andreeamorgociu2541 3 жыл бұрын
This is awesome, thank you!
@its_me_human6448
@its_me_human6448 3 жыл бұрын
Super valuable video, you are amazing and life changer.
@SkaleFreaks
@SkaleFreaks 4 жыл бұрын
Excellent video! thanks for sharing
@bob6168able
@bob6168able 3 жыл бұрын
Best of best. Thank you
@turboFalcon777
@turboFalcon777 4 жыл бұрын
Thank you Sir!
@SanderCords1
@SanderCords1 5 жыл бұрын
This is a very clear video! Thnx!
@LearntoInvest
@LearntoInvest 5 жыл бұрын
Thanks, I'm glad you like it!
@amrshahine950
@amrshahine950 4 жыл бұрын
Thank you its very useful
@Hrodric91
@Hrodric91 2 жыл бұрын
Thank you so much
@diegopulido4398
@diegopulido4398 5 жыл бұрын
THANK YOU
@votracy2837
@votracy2837 2 жыл бұрын
Thank you!!!
@nathangalvez9642
@nathangalvez9642 3 жыл бұрын
great video!
@beautifulblur
@beautifulblur 3 жыл бұрын
THANK YOU 🙏🏼🙏🏼
@frosherman
@frosherman 11 ай бұрын
what a great video!!!
@AnkushSharma-zv5hv
@AnkushSharma-zv5hv 4 жыл бұрын
thank you so much
@chamindasilva3191
@chamindasilva3191 Жыл бұрын
Thanks Jimmy
@louisrose7823
@louisrose7823 10 ай бұрын
Great video
@333shiraz
@333shiraz 4 жыл бұрын
Thank you
@argupta15115
@argupta15115 3 жыл бұрын
Hi Jimmy, love your video on this topic. Can you also do another video explaining the cost of debt in more detail. You mentioned in the video that we can find the cost of debt in the footnotes of the financial statements, can you please give me an example of any company financial statement which has this so I can use that as a reference for my future evaluations.
@walterconn5637
@walterconn5637 3 жыл бұрын
Thanks!
@nicolerodrigues8951
@nicolerodrigues8951 3 жыл бұрын
Helpful video!! Question: do you have a video explaining HOW a company issues bonds or sells equity. Curious to know how they come to the conclusion to do one or the other.
@jagulba
@jagulba 4 жыл бұрын
Awesome content man... learning so much from you Btw what are your favorite models to evaluate a fair price of businesses Do you have a video explaining which model should be used for what kind of business?
@Rajeshkumar-li2dn
@Rajeshkumar-li2dn 4 жыл бұрын
Excellent video 👍👍👍
@kojo6402
@kojo6402 5 жыл бұрын
thanks so much. please teach more corporate finance related subjects NPV, APV, IRR, WACC, CAPM etc
@LearntoInvest
@LearntoInvest 5 жыл бұрын
Good idea! I'll let you know when I do some more
@SurajP16
@SurajP16 Жыл бұрын
thanks mate
@to-ig9uy
@to-ig9uy 4 жыл бұрын
soooo helpful
@sangerserrao3785
@sangerserrao3785 4 жыл бұрын
great stuff
@kawardt6784
@kawardt6784 4 жыл бұрын
If my teacher could explain like you do. My teacher doesnt consider people that doesnt know a thing about finance. First time learning finance, new subject in my first sem, he just keeps talking and talking and I dont even know the terms he's using.
@alishlalani2751
@alishlalani2751 5 жыл бұрын
Business finance final today, this really helped! Also you have a really good voice!
@yash3714
@yash3714 4 жыл бұрын
how did it go?
@alishlalani2751
@alishlalani2751 4 жыл бұрын
I aced it!!
@yash3714
@yash3714 4 жыл бұрын
Congrats!! Can you help me with my business finance assessment i have?
@salehhlo
@salehhlo 5 жыл бұрын
Nice thank you :)
@LearntoInvest
@LearntoInvest 5 жыл бұрын
I like using WACC for discounted cash flow valuation. Do you use WACC or do you prefer a different method?
@wazup3333
@wazup3333 5 жыл бұрын
How do you actually apply this with actual financial statements, finding the weight of debt and equity, and calculating the cost of debt when companies have many separate notes payable like convertible debentures that turn into equity..?
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