This model is to estimate the weighted average cost of capital (WACC) of Mainfreight Limited (MFT), an NZX listed company.
Bear in mind, the debt and equity values should be estimated as the MARKET VALUES.
Some may just estimate the BETA, but in this model I calculated it based on the historical share prices. I used NZX ALL index as the market proxy and 5 year NZ Government Bond as the risk-free rate with risk premium assumed 7%.
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| WACC Calculation.x... |
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1 comments:
Nice model! It makes me feel all warm and fuzzy inside. There's just something about calculating WACC that makes me feel good.
Nice effort calculating Beta the long way. For those who may need to approximate it because they're dealing with a private company, here a tutorial for estimating Beta with comparable companies.
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