Enterprise Value Sensitivity to WACC Calculator

Quantify how shifting the weighted average cost of capital compresses or expands enterprise value, implied equity, and valuation deltas versus your base scenario. Enter EBITDA, a reference multiple, and the WACC cases you want to benchmark.

Trailing twelve-month EBITDA from your base valuation case.
Enterprise value divided by EBITDA in the reference scenario.
Weighted average cost of capital used in the base case.
Alternative WACC for upside, downside, or sensitivity testing.
Defaults to $0 if blank; subtracts from enterprise value to show equity.

For strategic planning only; pair with full valuation models before executing transactions.

Examples

  • EBITDA $12,500,000, 11.0× multiple, WACC shift 8.50% → 10.75%, net debt $20,000,000 → stressed EV $108,720,930.23 (−$28,779,069.77), equity $88,720,930.23 (−$28,779,069.77), WACC delta +2.25 pts.
  • EBITDA $9,500,000, 9.5× multiple, WACC shift 9.00% → 7.50%, net debt $12,000,000 → stressed EV $108,266,666.67 (+$19,266,666.67), equity $96,266,666.67 (+$19,266,666.67), WACC delta −1.50 pts.

FAQ

What if I already know my enterprise value?

Divide the current enterprise value by trailing EBITDA to derive an implied multiple, then plug that multiple into the calculator so the stressed scenarios remain anchored to observed pricing.

How should I choose the stress WACC?

Model at least one downside case that reflects recent credit spread moves and one upside case based on target capital structure or refinancing plans to map a realistic valuation corridor.

Can I include growth in this model?

This tool assumes zero terminal growth. If you expect higher or lower growth, adjust the base multiple first or rerun the scenarios with multiples sourced from a full DCF so the sensitivity reflects that outlook.

Does the output include currency formatting?

Yes. All valuation metrics are formatted in USD with two decimal places so you can drop the results directly into board decks or valuation memos.

Additional Information

  • The stressed valuation assumes the EBITDA multiple flexes in proportion to the ratio of current WACC to the stress WACC with no terminal growth change.
  • Implied equity value deducts net debt, letting you translate enterprise swings into shareholder impact instantly.
  • Delta outputs highlight upside when discount rates fall and quantify downside risk when financing costs or hurdle rates rise.
  • Combine this sensitivity with scenario planning for revenue, margin, or exit multiple drift to build a complete valuation bridge.

Related calculators