In business and finance, the cost of capital is the cost of obtaining funds for, or, conversely, the required return necessary to meet its cost of financing a capital budgeting project. Said another way, it is “the minimum return that a company should make on its own investments, to earn the cash flow out of which investors can be paid their return.
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acquisition price aerospace defense algoritm capital asset pricing model capital asset pricing model capm capitalization rate CAPM cash flow cash flow analysis cash flow statement company analyses comparable company Comparable company analysis cost of capital current assets current market value dcf model DCF Valuation Deal Value discounted cash flow discounted cash flow analysis EBITDA % estimate value EV/EBITA EV/EBITDA facebook financial definitions forecast sales Free Cash Flow key ratios LBO model M&A transactions mergermarket mergers and acquisitions model template model tutorial motorcycle parts net working capital Precedent transaction analysis private equity companies private equity industry relative valuation target trading comps WACC