What should I use as the WACC for equity on a $150MM Tech Co.? There's no good public comps, is there a general number that I can use as WACC?
| +261 | Earliest you can get fired | 56 | 7h |
| +250 | UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT | 47 | 7m |
| +224 | Investment Banking is Divine | 38 | 10h |
| +223 | Career Crossroads | 31 | 15h |
| +214 | US 2027 SA IB worried about background check | 52 | 21h |
| +206 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 41 | 9h |
| +203 | Another $115bn Mega deal for these banks. Congrats! | 43 | 15h |
| +108 | Is UBS really that bad? | 30 | 6m |
| +37 | Is Houston SA 28 recruiting already over? | 32 | 10h |
| +23 | Sweat Group 2026 Discussion | 24 | 11h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
RichChigga, sorry about the lack of response. Maybe one of these topics will help:
More suggestions...
Hope that helps.
Depends on Capital structure, but due to assumed illiquidity, I’d say something in the 13-17% range. Sensitize it and see
Can I just assume 20%, since that's typically the ROI that PE company like to see on their equity investment?
-
Yeah, in the meaning that LPs demand 20-25%, WACC in an LBO/ PE is higher than “normal.” But you can’t just assume 20% since debt should drag it down.
Many firms have a group-wide rate for WACC (firm-wide, or specifically for industries/ company stage) it’s not that serious. Try to pull peers or use a sensitization between 13-20% for a desired output.
Remember that LPs/ Equity in Wacc are important to a degree, but The IRR to break-even is essentially the cost of debt; thus it is imperative to incorporate debt in WACC.
Quibusdam quia fuga corporis qui sed nam voluptatem. Natus rem exercitationem pariatur sapiente quis non. Esse optio amet quibusdam numquam porro sint laboriosam. Ex odit fugiat sequi laboriosam quo quidem qui aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...