• WACC ownership: Treasury (34%) and corporate finance (32%) lead WACC calculations.
• Valuation methods: CAPM (83%) and DCF (83%) are the dominant financial models for valuation.
• Strategic metrics: IRR, NPV and ROI are the most-valued financial metrics for decision-making.

ROCKVILLE, Md. — March 10, 2026 — The Association for Financial Professionals (AFP) released the 2026 AFP Cost of Capital Survey Report, revealing how organizations evaluate investments in an increasingly complex economic landscape.

Adaptability in volatile markets
The survey reveals that organizations are moving toward more responsive valuation metrics.

• Market sensitivity: Approximately half of organizations adjust their hurdle rates in response to market volatility, geopolitical risks and regulatory shifts.
• Emerging technology: Over half of organizations use real-time data analytics and 18% use machine learning models in their cost of capital estimations.
• Hurdle rate update frequency: Thirty-two percent of organizations update their WACC on an "as-needed" basis, while 28% follow an annual schedule. Larger organizations typically maintain more structured update cycles.

The 2026 AFP Cost of Capital Survey Report reveals that approximately half of organizations adjust their hurdle rates in response to market volatility, geopolitical risks and regulatory shifts.

Common metrics for evaluating investments
The survey findings highlight a strategic divide in how firms set their internal hurdle rates.

• Hurdle rate standards: A majority (62%) of organizations use their calculated cost of capital as the standard hurdle rate for evaluating investments. However, 38% of organizations — particularly smaller or privately held firms — opt to set hurdle rates above their cost of capital.
• Responsibility for WACC: Treasury (34%) and corporate finance (32%) are the functions most often responsible for calculating the weighted average cost of capital (WACC). FP&A (19%) is less frequently involved.
• Widespread use of financial models: Capital asset pricing model (CAPM) is used by 83% of organizations for estimating cost of equity. Discounting cash flow (DCF) techniques are used by 83% of organizations to evaluate projects.
• Valuations in decision-making: Internal Rate of Return (IRR), Net Present Value (NPV), and Return on Investment (ROI) were cited by over 80% of financial professionals as being important in an organization’s decision-making process.

The 2026 AFP Cost of Capital Survey Report finds that a majority of organizations use calculated cost of capital as the standard hurdle rate.

External validation and communication
Given the strategic importance of cost of capital, organizations are seeking high levels of accuracy and confidentiality.

• External verification: Approximately 40% of organizations validate their cost of capital with external parties, most notably investment banks (41%) and consulting firms (40%).
• Strategic importance: Reflecting its competitive sensitivity, cost of capital information is typically communicated on a need-to-know basis at 78% of organizations.

Key quote
“The survey findings underscore how cost of capital has evolved into a dynamic strategic lever. By integrating real-time data and external validation, treasury and corporate finance leaders ensure their hurdle rates reflect the true risk-adjusted reality of their investments,” said Tom Hunt, CTP, Director of Treasury Practice, AFP.

Survey methodology
The 2026 AFP Cost of Capital Survey was conducted in October 2025 among 295 corporate practitioners representing organizations of varying sizes and industries globally.

Download the survey report
Full survey findings can be found in the 2026 AFP Cost of Capital Survey Report on the AFP website.

About AFP^® Headquartered outside of Washington, D.C., and located regionally in Singapore, the Association for Financial Professionals (AFP) is the professional society committed to advancing the success of treasury and finance members and their organizations. Established and administered by AFP, the Certified Treasury Professional and Certified Corporate FP&A Professional credentials set standards of excellence in treasury and finance. Each year, AFP hosts the largest networking conference worldwide for about 7,000 corporate financial professionals.

Media contact
Joe Hodanich
Senior Director, Digital Strategy & Content
Association for Financial Professionals
Email: [email protected]
Phone: (301) 961-8845