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An Embarrassment of Riches: Winning Ways to Value with the WACC

Author

Listed:
  • Ignacio Vélez-Pareja

    (Politécnico Grancolombiano. Colombia.)

  • Joseph Tham

    (Duke University. EEUU.)

Abstract

Existen diversas maneras de calcular el Coste Promedio Ponderado de Capital (CPPC) o WACC (Weighted Average Cost of Capital) y para el principiante, la plétora de posibilidades puede ser confusa. Presentamos, pues, un marco general para la clasificación de los CPPC que se aplican al FCF y al CCF. Por el momento, evitamos las complejidades. Para facilitar el debate, clasificamos los diversos CPPC en tres dimensiones. Esperamos que dicho marco estructural ayude al lector a hacer la correcta elección con respecto al cálculo del coste de capital en la práctica. En primer lugar, mostramos un debate cualitativo sobre las dimensiones de dicho marco. En segundo lugar, especificamos las fórmulas y cálculos apropiados para las celdas del cuadro. Al principio, es importante subrayar que este artículo trata únicamente con flujos de caja finitos o finite cash flows. A nuestro parecer, es mejor analizar expresiones para el coste de capital que sean relevantes para los finite cash flow, para lo que no se necesita mayor justificación. Seguir usando fórmulas de coste de capital apropiadas para los cash flows a perpetuidad resulta inexplicable e incomprensible. Desde un punto de vista práctico, los free cash flows se derivan de los balances financieros, que no se construyen a perpetuidad. En el mejor de los casos, las expresiones para el coste de capital derivadas de los cash flows a perpetuidad pueden ser aproximaciones razonables para los finite cash flows. En el peor de los casos, los resultados pueden ser equívocos.

Suggested Citation

  • Ignacio Vélez-Pareja & Joseph Tham, 2006. "An Embarrassment of Riches: Winning Ways to Value with the WACC," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 5, pages 1-23, February.
  • Handle: RePEc:eac:articl:02/05
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    Cited by:

    1. Ignacio Vélez-Pareja & Antonio Burbano-Pérez, 2006. "A Practical Guide for Consistency in Valuation: Cash Flows, Terminal Value and Cost of Capital," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 5, pages 1-16, June.
    2. Ignacio Vélez-Pareja & Rauf Ibragimov & Joseph Tham, 2008. "Constant Leverage And Constant Cost Of Capital: A Common Knowledge Half-Truth," ESTUDIOS GERENCIALES, UNIVERSIDAD ICESI, June.

    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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