WACCs and Hurdle Rate

  • Martin Schwarzbichler
  • Christian Steiner
  • Daniel Turnheim


The WACC (weighted average cost of capital) and the hurdle rate determine key input parameters for investment decisions in energy companies. The WACC is necessary to calculate the required key financial KPIs—NPV , DPI and DPP—while the hurdle rate sets the minimum return requirement a project needs to achieve in order to reach approval and to subsequently contribute to achieving management’s ROACE target.



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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Martin Schwarzbichler
    • 1
  • Christian Steiner
    • 2
  • Daniel Turnheim
    • 1
  1. 1.OMV AGTrabrennstraße, ViennaAustria
  2. 2.Austrian Financial Reporting Enforcement Panel (AFREP)Argentinierstrasse, ViennaAustria

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