Weighted average cost of capital (WACC)

Weighted average cost of capital (WACC) calculator of listed and unlisted companies based on an input-based API calculation engine. The weighted average cost of capital (WACC) represents a company's blended average cost of capital across all financing sources, including common shares, preferred shares, and debt. The WACC is commonly used in a discounted cash flow (DCF) analysis to find the net present value (NPV) of an investment and reflects the rate at which a company’s future free cash flows (FCFs) is discounted.

Documentation, Examples, FAQ, Terms & Conditions and License: https://www.qumundo.com/docs/weighted-average-cost-of-capital-api.

If you see a feature that is missing or not correctly enforced, please open an issue.

You can find example request and response schema in the JSON file here: example.json

🇩🇪 Crafted in Frankfurt am Main, Germany.

Last changes

Last changes and the version history can be found in the CHANGELOG.md file.

As this library is SemVer-compatible, any breaking change would be released as a MAJOR version only. Non-breaking changes and features are released as MINOR. Feature updates and bug fixes are released as PATCH (note that feature updates may as well be bundled under a MINOR release, if it comes with new settings or minor changes).

How to install?

Include wacc in your package.json dependencies:

npm install --save @qumundo/wacc

How to use?

This module may be used to calculate, determine and retrieve weighted average cost of capital (WACC) parameters and metrics. You may self-define the required input parameter to calculate current, historical, future and/or scenario-based parameters and metrics based on your own data and assumptions. Weighted average cost of capital (WACC) parameters and metrics can be calculated in various ways; this module gives you the option to calculate, determine and retrieve weighted average cost of capital (WACC) parameters and metrics through various methods.

🔗 Import the module

Import the module in your code:

const WACC = require("@qumundo/wacc")

➡️ Create request schema and define input parameters

let wacc_item =
{
  "id": "",
  "id_type": "",
  "legal_entity": "Company X",
  "fiscal_year": 2020,
  "date": "2020-12-31",
  "currency": "EUR",
  "cost_debt": 0.016072,
  "weight_debt": 0.007758,
  "cost_equity": 0.043090,
  "weight_equity": 0.992241
}

➡️ Get wacc parameters for created schema and defined input parameters

let wacc_request = { data: [] };

wacc_request.data.push(wacc_item);  // Up to 5 items/calculation per request

let wacc = await WACC.getWACC(wacc_request);

/*
wacc.data[0] ===

{
  "success": true,
  "message": "",
  "id": "",
  "id_type": "",
  "legal_entity": "Company X",
  "fiscal_year": 2020,
  "date": "2020-12-31",
  "currency": "EUR",
  "wacc_debt": 0.000125,
  "wacc_equity": 0.042756,
  "wacc": 0.04288
},

*/

➡️ Get example request schema

let wacc_request = await WACC.getExample(true, false);  // (request, response)

➡️ Get example response schema

let wacc_response = await WACC.getExample(false, true);  // (request, response)

➡️ Methods and options to calculate wacc parameters and metrics

Various methods and options are available to calculate weighted average cost of capital (WACC) parameters and metrics: