What is WACC - Weighted Average Cost of Capital

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  • Опубликовано: 25 ноя 2024

Комментарии • 198

  • @ScoutyBoyO
    @ScoutyBoyO 5 лет назад +60

    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 лет назад +37

      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 3 года назад

      instablaster...

  • @Thomas-ow2bm
    @Thomas-ow2bm 5 лет назад +128

    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

  • @oliviat978
    @oliviat978 4 года назад +76

    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 года назад +7

      This is better explained than my Harvard mba professors

  • @cafiveohsrockbandremix9254
    @cafiveohsrockbandremix9254 3 года назад +22

    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!

  • @jacintafeng6787
    @jacintafeng6787 4 года назад +2

    Perfectly explained, probably the best WACC explanation u can find on RUclips

  • @giantsquidy3491
    @giantsquidy3491 4 года назад +7

    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.

  • @printstudio9853
    @printstudio9853 Год назад +1

    woow..!!!...excellent piece of work bro...well done!!!

  • @mahmuttumenbatur5632
    @mahmuttumenbatur5632 2 года назад +1

    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

  • @mmiller7203
    @mmiller7203 3 года назад

    I have read three sources on this subject when I should have just come watch your video.....thank you!

  • @delickkanyesigye9938
    @delickkanyesigye9938 2 года назад

    Finally I've found someone who has made more sense of this especially on the Real application of WACC. Wow

  • @panagiotisanastasopoulos107
    @panagiotisanastasopoulos107 3 года назад +7

    Half a semester of finance course in ~7 minutes!! Great work!

  • @olivercooper7556
    @olivercooper7556 3 года назад +3

    It’s incredible how such a complex perceived formula (or at least for me) can be explained so elegantly, what an incredible video!

  • @_A_343
    @_A_343 20 дней назад +1

    Excellent example.

  • @nicoleluo6692
    @nicoleluo6692 2 года назад

    This is the best best WACC explanation i have never seen! 👍

  • @levibowles5917
    @levibowles5917 Год назад +1

    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!

  • @sweettwiss1194
    @sweettwiss1194 3 года назад +1

    My CFA length lecture is embarrassing compare to the info you give in one short video. Thank you so much!

  • @lukebarmakian3200
    @lukebarmakian3200 2 года назад

    I've been trying to learn DCF forever and this helped so much I know it's not actually about dcf but still thanks!

  • @jadeling4025
    @jadeling4025 4 года назад +1

    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.

  • @truenorth8996
    @truenorth8996 4 года назад

    Than you so much. I struggled all evening trying to undesrtand wacc formula.. now its'clear

  • @TA-wc8zz
    @TA-wc8zz 3 года назад

    Way better than my professor. These professors complicate everything and spin it into some crazy concept.

  • @brilliant1863
    @brilliant1863 5 лет назад +4

    I don't understand how your videos don't have more views. Great explanation as always!

  • @ibrahimmosavi2168
    @ibrahimmosavi2168 3 года назад +2

    You explained way better than my finance professor. Thank you!

  • @sitijamilahnordin4487
    @sitijamilahnordin4487 3 года назад

    you explained better than my MOCA lecturer thank you so much bless you!!!!!!!!!!!!

  • @JosueLopez-jx1th
    @JosueLopez-jx1th 2 года назад

    Very clearly explained - Thanks!

  • @herryfrd2740
    @herryfrd2740 2 года назад

    best explanation of WACC i've ever heard

  • @marceljoshuakannampuzha522
    @marceljoshuakannampuzha522 4 года назад +1

    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 года назад

      Same, where u from

  • @PPL_SFGCS
    @PPL_SFGCS 3 месяца назад

    Clear and conscience. Thanks for explaining the concept of WACC

  • @owend8956
    @owend8956 5 лет назад +2

    The best tutorial for finance period.

  • @glee1669
    @glee1669 3 года назад +1

    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%. 🙏!

  • @johnzarznia6814
    @johnzarznia6814 6 лет назад +6

    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.

  • @yizhang6117
    @yizhang6117 3 года назад

    best ever explanation on WACC

  • @23longbong
    @23longbong 3 года назад

    wow easier to understand than my 2-hour lecture, thank youu

  • @giulianonigro774
    @giulianonigro774 Год назад

    Thank you for the video! It's really straightforward and useful to understand the meaning behind the wacc

  • @Springdaysbetter
    @Springdaysbetter 4 года назад +2

    Your explanations were so clear and perfectly understandable
    Thank you so much😊

  • @Beancounter2014
    @Beancounter2014 5 лет назад +2

    Thanks for the video. It breaks WACC down in a way that is very understandable.

  • @aprilbrown9994
    @aprilbrown9994 2 года назад +1

    I LOVE YOU!!! Thanks a million, it’s a damn shame my professor couldn’t break it down like this!!!!

  • @SurajSharma-kl9vl
    @SurajSharma-kl9vl 8 месяцев назад

    you explained it way better than my acct prof did , thank you

  • @DrSam86
    @DrSam86 4 года назад +1

    Thank u man..u help me greatly with mba much more than the horrible univ. books.

  • @csjames69
    @csjames69 5 лет назад +2

    Easy to understand while doing my MBA studies. Thanks.

  • @itsmohdiii3689
    @itsmohdiii3689 4 года назад +2

    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

  • @donfrancis1246
    @donfrancis1246 5 лет назад +5

    This video is so useful, I cannot thank you enough.

  • @knithindas
    @knithindas 5 лет назад

    Hey guys awesome work. Great work. Minimum visual effects made it better. Thanks

  • @Gar136
    @Gar136 4 года назад +4

    Thank you for helping me prepare for my quiz :)

  • @kawardt6784
    @kawardt6784 5 лет назад +5

    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.

  • @jiveon007
    @jiveon007 4 года назад +1

    Brilliantly explained. Thank you.

  • @kojo6402
    @kojo6402 5 лет назад +5

    thanks so much. please teach more corporate finance related subjects NPV, APV, IRR, WACC, CAPM etc

    • @LearntoInvest
      @LearntoInvest  5 лет назад +3

      Good idea! I'll let you know when I do some more

  • @connertaherian5166
    @connertaherian5166 5 лет назад +2

    Your videos are very well crafted, thanks!

  • @nazimrahman
    @nazimrahman 3 года назад +1

    wonderfully explained

  • @ozandogacerdem8450
    @ozandogacerdem8450 3 года назад +1

    This is a great video I loved it. Thank you for sharing it. I learned a lot of information.

  • @willfindjr
    @willfindjr 3 года назад

    Great video.. example used was very relevant and easy to understand. please keep the videos coming :-)

  • @connorgioiafigliu
    @connorgioiafigliu 4 года назад +1

    Really simple explanation, thank you!

  • @jakobherold26
    @jakobherold26 5 лет назад +2

    Perfectly explained, thank you so much! Insane video!

  • @kaushiks87
    @kaushiks87 4 года назад

    Great video. I just found an awesome channel for learning Finance Models!

  • @kevorod
    @kevorod 2 года назад

    Love this video format!

  • @pingislife2653
    @pingislife2653 4 года назад

    J, thank you for this lesson! It was very useful in better understanding your other video on how to value a stock using DCF.

  • @emmy8133
    @emmy8133 3 года назад

    Clear explanation! Thanks for sharing.

  • @sandrajin915
    @sandrajin915 4 года назад

    Super helpful! Thank you so much for this video!

  • @brayaran7370
    @brayaran7370 4 года назад

    Thank you for explaining this. This video is a JEWEL!

  • @vutony4282
    @vutony4282 4 года назад

    Very easy to understand. Thanks.

  • @ChiChi-sw5iu
    @ChiChi-sw5iu 5 лет назад +2

    Great explanation! Thank you for this!

  • @its_me_human6448
    @its_me_human6448 4 года назад +1

    Super valuable video, you are amazing and life changer.

  • @properoldschool
    @properoldschool 4 года назад

    Thanks so much, you made this easier to understand.

  • @pravinmakwana3039
    @pravinmakwana3039 5 лет назад +2

    in the formula I make the debt portion of the equation 0.9% not 3% as shown. I think video is excellent though.

  • @cassiusbraganza4658
    @cassiusbraganza4658 Год назад

    Wow, Amazing video bro!

  • @SkaleFreaks
    @SkaleFreaks 4 года назад

    Excellent video! thanks for sharing

  • @AlexOus
    @AlexOus 5 лет назад +1

    Thanks for your efforts! Great content!

  • @vinithashukla8637
    @vinithashukla8637 3 года назад

    Today I am proud because I earned more than I traded, That's why I will be forever Thankful to BYSOS

  • @ludiogot143
    @ludiogot143 4 года назад

    Thank you for making it simple

  • @raishutalks8216
    @raishutalks8216 3 года назад +1

    Thank you Jimmy

  • @Intothemarket101
    @Intothemarket101 5 лет назад +1

    Thank you so much for sharing this useful data! Greatly appreciated.

  • @alishlalani2751
    @alishlalani2751 5 лет назад +1

    Business finance final today, this really helped! Also you have a really good voice!

    • @yash3714
      @yash3714 4 года назад

      how did it go?

    • @alishlalani2751
      @alishlalani2751 4 года назад +2

      I aced it!!

    • @yash3714
      @yash3714 4 года назад

      Congrats!! Can you help me with my business finance assessment i have?

  • @willrogers7308
    @willrogers7308 Год назад

    brilliant video, thank you so much!

  • @jahorasvictornaibaho7467
    @jahorasvictornaibaho7467 4 года назад +1

    Great explanatuon... I understood about the using WACC

  • @Payalmittal04
    @Payalmittal04 Месяц назад

    Thank you so much for this video 😊

  • @marianacasas3749
    @marianacasas3749 2 года назад

    thx

  • @abuh9400
    @abuh9400 3 года назад

    Nice method on explaining, like it

  • @barberuddin4928
    @barberuddin4928 5 лет назад

    Perfectly explained!

  • @tatendampwanyiwa5544
    @tatendampwanyiwa5544 5 лет назад +1

    thank you for video. it is very helpful.

  • @amrshahine950
    @amrshahine950 4 года назад +1

    Thank you its very useful

  • @toneraynger
    @toneraynger 5 лет назад +2

    Hi Jimmy, Great video but could you clearly explain where the 7.9% that fell out of the sky came from... it was all going so well till then... thanks and good job

  • @leabenn17
    @leabenn17 5 лет назад

    Thank you. This will help for my exam

  • @tannguyenphucgia
    @tannguyenphucgia 2 года назад

    i'm so confused about the tax part. Can someone please explain it to me? Many thanks.

  • @SanderCords1
    @SanderCords1 5 лет назад +1

    This is a very clear video! Thnx!

  • @inspirationalquotesforyou
    @inspirationalquotesforyou 4 года назад

    if you be able to demonstrate where you get the number through the balance sheet, it would be great. By the way, this is the great video .Thank you

  • @andreeamorgociu2541
    @andreeamorgociu2541 3 года назад

    This is awesome, thank you!

  • @Rajeshkumar-li2dn
    @Rajeshkumar-li2dn 4 года назад +1

    Excellent video 👍👍👍

  • @markmendis5951
    @markmendis5951 4 года назад +4

    Hey, Could you please do a video on the how to find intrinsic value of a company per share basis.

    • @LearntoInvest
      @LearntoInvest  4 года назад +1

      I got you covered ruclips.net/video/fd_emLLzJnk/видео.html 👍🙂

  • @alainat6444
    @alainat6444 5 лет назад +1

    Thank-you!!!!!!!!!! I understand!

  • @filippoiguera3224
    @filippoiguera3224 4 года назад

    Fantastic! Thank you

  • @s.l.6934
    @s.l.6934 2 года назад

    I got lost with the 1 -t. Why do we have to subtract the .25 by 1?

  • @turboFalcon777
    @turboFalcon777 4 года назад +1

    Thank you Sir!

  • @SkylerJames
    @SkylerJames 3 года назад +1

    Now that we seem to be headed into an inflationary environment, I put more WACC focus on my company analyses. Companies with lower costs of capital should be able to weather high inflation better due to their financial stability and theoretically more stable balance sheet.

  • @bob6168able
    @bob6168able 4 года назад

    Best of best. Thank you

  • @beautifulblur
    @beautifulblur 4 года назад +1

    THANK YOU 🙏🏼🙏🏼

  • @nathangalvez9642
    @nathangalvez9642 3 года назад

    great video!

  • @chamindasilva3191
    @chamindasilva3191 Год назад

    Thanks Jimmy

  • @frosherman
    @frosherman Год назад

    what a great video!!!

  • @to-ig9uy
    @to-ig9uy 4 года назад +1

    soooo helpful

  • @jagulba
    @jagulba 5 лет назад +1

    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?

  • @argupta15115
    @argupta15115 3 года назад

    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.