Cost of Equity Guides

How to Calculate Cost of Equity Using CAPM

How to calculate cost of equity with CAPM: the formula, where to find the risk-free rate, beta and equity risk premium, a worked example and the model's limits.

Cost of Equity With the Dividend Growth (Gordon Growth) Model

Calculate cost of equity with the dividend growth model: D0 vs D1, a worked example at a $50 share price, and when the Gordon growth model breaks down.

How to Calculate Cost of Equity for a Private Company

How to estimate cost of equity for a private company with the build-up method or comparable company betas, plus a 15% worked example and why rates run higher.

Levered vs Unlevered Beta: Which One to Use for Cost of Equity

Levered beta includes debt risk, unlevered beta strips it out. Learn which to use in CAPM, how the Hamada equation converts them, and where to find betas.

Cost of Equity and WACC: How They Fit Together

Where cost of equity sits in the WACC formula, a worked example that lands at 8.5%, market vs book weights, and when to discount with Ke instead of WACC.

Cost of Equity vs Cost of Debt: Why Equity Costs More

Why cost of equity is higher than cost of debt: shareholders get paid last and dividends aren't tax deductible. Side by side comparison with a worked example.

How to Calculate Cost of Equity in Excel or Google Sheets

Set up cost of equity in Excel or Google Sheets: exact cell formulas for CAPM, beta with SLOPE, the dividend growth model, build-up, relevered beta and WACC.