estimating debt beta
where to find beta , etc to calculate a company’s WACC?
HI!
I am writing a equity research report,
when calculating wacc for a specific company
how to the beta, coast of equity, cost of debt? can you tell me like some website or methods to estimate them?
also, for risk free rate, is this rate same for all industries?
thank you so much for your help!
Yahoo finance (finance.yahoo.com) has the beta under the “Key Statistics” tab at the left hand side. You pop that into the CAPM to get the cost of equity.
The risk free rate is the same for all companies, usually treasuries. It should theoretically match the duration of the investment though.
Since it’s very hard to get prices and yields for traded bonds, the cost of debt is usually imputed simply by dividing the past years interest expense divided by the average debt level over the year. You can find that under the “Balance Sheet” and “Income Statement” tabs
