how is that you can explain these things better than my old MBA profs? how is this possible? I mean seriously, a person drops a 100k on an mba and then finds better sources on youtube. wtf. edit: well done, keep it up, thank you
Thank you so much. I am in an MBA program and came from a very non-math undergraduate field. This video made everything clear. Profs and finance textbooks can be obscure and cryptic to those not of the math persuasion.
ı have been watching so many videos since yesterday to prepare myself for the exam, yours is the best one. simple, clear and to the point. well done and thank you
I have my finance exam in week and this video was absolutely perfect for my learning, thank you very much. Very helpful and broke down a complex topic into its simplest form.
You are the best after I have been searching for this information online for 2 days and one night, seeing so many websites and google explanations. I especially like you telling me where can I find the average cost of debt.
How do you actually apply this with actual financial statements, finding the weight of debt and equity, and calculating the cost of debt when companies have many separate notes payable like convertible debentures that turn into equity..?
This is a great video! I use WACC sometimes but I often just default to PE because its easier to use. But i wan to get my skills up enough to confidently use WACC.
amazing video very educational helped me refresh my memory before an interview as a finance student thank you ... guys this is a no bs video amazingly helpfull you sir get my like and subscription
THANK YOU for this! I understand WACC in general and how to compute, but I was missing a clear reasoning of how it was applied back to whether a company should pursue a project of an expected return rate of x%. 🙏!
If my teacher could explain like you do. My teacher doesnt consider people that doesnt know a thing about finance. First time learning finance, new subject in my first sem, he just keeps talking and talking and I dont even know the terms he's using.
Now that we seem to be headed into an inflationary environment, I put more WACC focus on my company analyses. Companies with lower costs of capital should be able to weather high inflation better due to their financial stability and theoretically more stable balance sheet.
Please explain how to find the equity value in the WACC calculation. Is it the current market value of all stock in which case it is market capitalization ($/shr x no. of shrs), or is it the stockholders equity which can be found from the balance sheet? These are two very different numbers.
Awesome content man... learning so much from you Btw what are your favorite models to evaluate a fair price of businesses Do you have a video explaining which model should be used for what kind of business?
You lost me at 4:11. where does the top line you wrote of the equation come from and what happened to the rest of the equation to the left? how did you get 7.9%?
Fill in the formula so you get 0.3*0.04*0.75+0+0.7*0.1=0.079. So the percentages he first divided by 100. and at the end you multiple by 100. I hope it was helpful
Hi Jimmy, Great video but could you clearly explain where the 7.9% that fell out of the sky came from... it was all going so well till then... thanks and good job
Thanks for the video. It sir really useful. But, I have a question, the WACC percentage value is a percentage of the companies market cap right? Hope to receive a reply soon! Thanks!
Helpful video!! Question: do you have a video explaining HOW a company issues bonds or sells equity. Curious to know how they come to the conclusion to do one or the other.
Hi Jimmy, love your video on this topic. Can you also do another video explaining the cost of debt in more detail. You mentioned in the video that we can find the cost of debt in the footnotes of the financial statements, can you please give me an example of any company financial statement which has this so I can use that as a reference for my future evaluations.
Just want to make sure I understood this correctly, the 4%, and 10% would come from the footnotes, correct? If they do not, how do we calculate these numbers? Does the company provide the calculated future value? If not, wouldn't this value be too speculative, and therefore not useful?
in the formula, the equity portion (at 3.25 min), do you mean R instead of D? You have r being the required rate of return. Great video.
You're absolutely correct. I apologize for that. It should have been r not d. I said required rate of return, but for some reason, I put d
instablaster...
how is that you can explain these things better than my old MBA profs? how is this possible? I mean seriously, a person drops a 100k on an mba and then finds better sources on youtube. wtf. edit: well done, keep it up, thank you
i'm in the same case with the same feeling
I agree
Yeah. Sad.
My corporate finance lecturer for my master's didn't explain this even half as good as you did! thank you so much!
This is better explained than my Harvard mba professors
I love that you're able to explain WACC better in a 6:30 video than my Intermediate Finance textbook can in 40+ pages. Thank you!
Perfectly explained, probably the best WACC explanation u can find on TH-cam
Thank you so much. I am in an MBA program and came from a very non-math undergraduate field. This video made everything clear. Profs and finance textbooks can be obscure and cryptic to those not of the math persuasion.
ı have been watching so many videos since yesterday to prepare myself for the exam, yours is the best one. simple, clear and to the point. well done and thank you
You already got a sub from me. I can't tell you how long I was looking for someone to break this down exactly like you did. Thank you!
It’s incredible how such a complex perceived formula (or at least for me) can be explained so elegantly, what an incredible video!
Half a semester of finance course in ~7 minutes!! Great work!
woow..!!!...excellent piece of work bro...well done!!!
I have my finance exam in week and this video was absolutely perfect for my learning, thank you very much. Very helpful and broke down a complex topic into its simplest form.
Same, where u from
Finally I've found someone who has made more sense of this especially on the Real application of WACC. Wow
This is the best best WACC explanation i have never seen! 👍
I have read three sources on this subject when I should have just come watch your video.....thank you!
I've been trying to learn DCF forever and this helped so much I know it's not actually about dcf but still thanks!
You are the best after I have been searching for this information online for 2 days and one night, seeing so many websites and google explanations. I especially like you telling me where can I find the average cost of debt.
You explained way better than my finance professor. Thank you!
I like using WACC for discounted cash flow valuation. Do you use WACC or do you prefer a different method?
How do you actually apply this with actual financial statements, finding the weight of debt and equity, and calculating the cost of debt when companies have many separate notes payable like convertible debentures that turn into equity..?
My CFA length lecture is embarrassing compare to the info you give in one short video. Thank you so much!
Clear and conscience. Thanks for explaining the concept of WACC
you explained better than my MOCA lecturer thank you so much bless you!!!!!!!!!!!!
The best tutorial for finance period.
Than you so much. I struggled all evening trying to undesrtand wacc formula.. now its'clear
Way better than my professor. These professors complicate everything and spin it into some crazy concept.
This is a great video! I use WACC sometimes but I often just default to PE because its easier to use. But i wan to get my skills up enough to confidently use WACC.
amazing video very educational helped me refresh my memory before an interview as a finance student thank you ...
guys this is a no bs video amazingly helpfull
you sir get my like and subscription
I LOVE YOU!!! Thanks a million, it’s a damn shame my professor couldn’t break it down like this!!!!
Easy to understand while doing my MBA studies. Thanks.
I'm glad you liked it 😁
best explanation of WACC i've ever heard
Your explanations were so clear and perfectly understandable
Thank you so much😊
Thanks for the video. It breaks WACC down in a way that is very understandable.
This video is so useful, I cannot thank you enough.
Very clearly explained - Thanks!
you explained it way better than my acct prof did , thank you
THANK YOU for this! I understand WACC in general and how to compute, but I was missing a clear reasoning of how it was applied back to whether a company should pursue a project of an expected return rate of x%. 🙏!
Thank you for the video! It's really straightforward and useful to understand the meaning behind the wacc
best ever explanation on WACC
Hey guys awesome work. Great work. Minimum visual effects made it better. Thanks
Your videos are very well crafted, thanks!
Excellent example.
Perfectly explained, thank you so much! Insane video!
wow easier to understand than my 2-hour lecture, thank youu
Thank you for helping me prepare for my quiz :)
Thank u man..u help me greatly with mba much more than the horrible univ. books.
Brilliantly explained. Thank you.
Great, short and pro explained!
This is a great video I loved it. Thank you for sharing it. I learned a lot of information.
J, thank you for this lesson! It was very useful in better understanding your other video on how to value a stock using DCF.
Great video.. example used was very relevant and easy to understand. please keep the videos coming :-)
Business finance final today, this really helped! Also you have a really good voice!
how did it go?
I aced it!!
Congrats!! Can you help me with my business finance assessment i have?
Great explanation! Thank you for this!
Love this video format!
Thank you for explaining this. This video is a JEWEL!
thanks so much. please teach more corporate finance related subjects NPV, APV, IRR, WACC, CAPM etc
Good idea! I'll let you know when I do some more
Thank you so much for sharing this useful data! Greatly appreciated.
Great video. I just found an awesome channel for learning Finance Models!
Really simple explanation, thank you!
Thanks for your efforts! Great content!
Super helpful! Thank you so much for this video!
Wow, Amazing video bro!
wonderfully explained
Clear explanation! Thanks for sharing.
Super valuable video, you are amazing and life changer.
Thanks so much, you made this easier to understand.
If my teacher could explain like you do. My teacher doesnt consider people that doesnt know a thing about finance. First time learning finance, new subject in my first sem, he just keeps talking and talking and I dont even know the terms he's using.
This is a very clear video! Thnx!
Thanks, I'm glad you like it!
Very easy to understand. Thanks.
Great explanatuon... I understood about the using WACC
Now that we seem to be headed into an inflationary environment, I put more WACC focus on my company analyses. Companies with lower costs of capital should be able to weather high inflation better due to their financial stability and theoretically more stable balance sheet.
Perfectly explained!
brilliant video, thank you so much!
Thank you so much for this video 😊
Excellent video! thanks for sharing
Thank you for making it simple
This is awesome, thank you!
Nice method on explaining, like it
thank you for video. it is very helpful.
in the formula I make the debt portion of the equation 0.9% not 3% as shown. I think video is excellent though.
Thank you. This will help for my exam
Hey, Could you please do a video on the how to find intrinsic value of a company per share basis.
I got you covered th-cam.com/video/fd_emLLzJnk/w-d-xo.html 👍🙂
Please explain how to find the equity value in the WACC calculation. Is it the current market value of all stock in which case it is market capitalization ($/shr x no. of shrs), or is it the stockholders equity which can be found from the balance sheet? These are two very different numbers.
Awesome content man... learning so much from you
Btw what are your favorite models to evaluate a fair price of businesses
Do you have a video explaining which model should be used for what kind of business?
Excellent video 👍👍👍
You lost me at 4:11. where does the top line you wrote of the equation come from and what happened to the rest of the equation to the left? how did you get 7.9%?
Fill in the formula so you get
0.3*0.04*0.75+0+0.7*0.1=0.079. So the percentages he first divided by 100. and at the end you multiple by 100. I hope it was helpful
@@bamschilders great explanation
Hi Jimmy, Great video but could you clearly explain where the 7.9% that fell out of the sky came from... it was all going so well till then... thanks and good job
Thanks for the video. It sir really useful.
But, I have a question, the WACC percentage value is a percentage of the companies market cap right?
Hope to receive a reply soon! Thanks!
Thank you its very useful
Thank you Jimmy
Helpful video!! Question: do you have a video explaining HOW a company issues bonds or sells equity. Curious to know how they come to the conclusion to do one or the other.
i'm so confused about the tax part. Can someone please explain it to me? Many thanks.
Great video jimmy, but one important question, where does a mere mortal find the information to input into the formula!?
what a great video!!!
Hi Jimmy, love your video on this topic. Can you also do another video explaining the cost of debt in more detail. You mentioned in the video that we can find the cost of debt in the footnotes of the financial statements, can you please give me an example of any company financial statement which has this so I can use that as a reference for my future evaluations.
Fantastic! Thank you
Great explaination👌👌
Can you explain what do you meant by discounting cash flows???
Thank-you!!!!!!!!!! I understand!
I got lost with the 1 -t. Why do we have to subtract the .25 by 1?
Just want to make sure I understood this correctly, the 4%, and 10% would come from the footnotes, correct? If they do not, how do we calculate these numbers?
Does the company provide the calculated future value? If not, wouldn't this value be too speculative, and therefore not useful?
Do we even need the Terminal value or just stick to adjusted present value to consider the margin of safety?