WACC vs. Cost of Equity in a DCF
Why would one use Cost of Equity over WACC as the discount rate in a DCF? And in general why is WACC used?
Why would one use Cost of Equity over WACC as the discount rate in a DCF? And in general why is WACC used?
| +86 | [2026 - October] Unbiased Prestige Rankings | 52 | 8h |
| +86 | Who is the final boss in Houston Energy? (GS, JEFF or EVR) | 19 | 6h |
| +71 | You should probably leave IB | 26 | 17h |
| +49 | McK vs A&M Offer Decision | 25 | 2h |
| +45 | Why Do We Turn Comments? | 10 | 1d |
| +43 | Tomorrow Will Be Better | 5 | 3d |
| +41 | Moelis PCA vs Lower tier BB Coverage | 30 | 10h |
| +24 | How much should you ask questions / seek feedback as an intern? | 8 | 23h |
| +23 | UBS IB #24 in US M&A in 2026 | 8 | 12h |
| +22 | UBS’s Investment Bank Is Building an AI Slop Factory | 3 | 1d |
Career Resources
can just google this. but would use cost of equity for companies with no debt in their capital structure
Quo unde laborum sint qui qui perferendis assumenda et. Nulla eveniet ab harum est omnis at. Dolore deserunt eius voluptatem quis tenetur voluptatem qui. Omnis consequatur corporis voluptas a perferendis. Tenetur modi inventore sunt voluptatem aspernatur laboriosam quia.
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...