February 11, 2021
Talking Shop: Do You Use Barra Beta or Bloomberg To Calculate WACC?
Member question: “Is anyone using Barra to calculate WACC (weighted average cost of capital) or do you use another service provider? “To calculate cost of equity, we use our beta available from Bloomberg. Over the last year, our beta has decreased. The lower beta results in a lower calculated cost of equity and then WACC.“We think this could be a short-term impact and need to be very thoughtful about how to apply it in various analysis. In recent conversations, we…