Unlevered Cost Of Capital

Filed Under »
Dictionary Says

Definition of 'Unlevered Cost Of Capital'

An evaluation that uses either a hypothetical or actual debt-free scenario when measuring the cost to a firm to implement a particular capital project. The unlevered cost of capital should illustrate that it is a cheaper alternative than a levered cost of capital investment program. A variation of the cost of capital calculation.
Investopedia Says

Investopedia explains 'Unlevered Cost Of Capital'

Unlevered cost of capital will be a cheaper alternative to a levered cost of capital investment, as there are higher costs associated with the issuing of debt or preferred equity. Some of these marginal costs include, but are not limited, underwriting costs, brokerage fees, and dividend and coupon payments.
Search results for

'Unlevered Cost Of Capital'

  • Investors Need A Good WACC

    http://www.investopedia.com/articles/fundamental/03/061103.asp
    ... reminding everyone that it's time to get back to fundamentals and take a look at
    a key aspect of share valuations: the weighted average cost of capital (WACC). ...

  • Valuing Private Companies

    http://www.investopedia.com/articles/fundamental-analysis/11/valuing-private-companies.asp
    ... firm. Once an unlevered beta estimate is made, the cost of equity can be
    estimated using the Capital Asset Pricing Model (CAPM). ...

  • Top 3 Pitfalls Of Discounted Cash Flow Analysis

    http://www.investopedia.com/articles/07/DCF_pitfalls.asp
    ... Sometimes analysts will use an adjusted unlevered free cash flow to calculate a
    present ... ß(R m - R f ) or maybe the weighted average cost of capital of the ...

  • Top Things To Know For An Investment Banking Interview

    http://www.investopedia.com/articles/financialcareers/10/investment-banking-interview.asp
    ... Capital Expenditures – Increases in Net Working Capital (NWC). ... that the firm is levered,
    with the cost of debt ... the value of an all-equity (unlevered) firm and ...

  • 4 Stocks Too Good To Ignore

    http://stocks.investopedia.com/stock-analysis/2011/4-Stocks-Too-Good-To-Ignore-AFAM-AZO-MPAA-AGX0705.aspx
    ... earn an ROIC consistently above its cost of capital ... projects, but over time those
    poor capital allocation decisions ... yield of 11%, with an unlevered return on ...

Related Articles

Partner Links