Date of Project
3-28-2025
Document Type
Honors Thesis
School Name
W. Fielding Rubel School of Business
Department
Finance
Major Advisor
Dr. Brad Stevenson
Abstract
This study explores how the weighted average cost of capital (WACC) can be used to value small businesses by applying to model to IPO data. Small businesses differ greatly from the publicly traded companies WACC is normally used for, so using the model presents some challenges. By applying the model to small firms that underwent the initial public offering process, this study was able to determine that WACC may be a useful valuation tool if some adjustments are made for the industries being analyzed.
Recommended Citation
Stevenson, Joshua Tyler, "Valuing Small Business: Applying WACC to IPO Data" (2025). Undergraduate Theses. 171.
https://scholarworks.bellarmine.edu/ugrad_theses/171