Calculate Value Of Firm Using Wacc

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Use this calculator to determine the intrinsic value of a company based on its cash flows and the Weighted Average Cost of Capital (WACC).

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\n\n\nEarnings Before Interest and Taxes\n

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\n\n\nCorporate tax rate (as a percentage)\n

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\n\n\nCost of capital as a percentage\n

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\n\n\nLong-term growth rate of earnings\n

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Results

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Free Cash Flow (FCF) = Operating Income × (1 – Tax Rate)

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Terminal Value = FCF × (1 + Perpetual Growth Rate) / (WACC – Perpetual Growth Rate)

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Value of Firm = Terminal Value

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Key Variables

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Variable	Description
Operating Income (EBIT)	Profitability before interest and taxes
Tax Rate	Corporate tax rate
WACC	Weighted Average Cost of Capital
Perpetual Growth Rate	Long-term growth rate

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