Question

Where can I find a list of pure-play candidates that I can use to calculate the segment WACCs for a particular company?

Answer 1

I am assuming you do not have access to a database, such as Capital IQ, to accomplish this task. If this is the case, one option is to go to the SEC Edgar Database and search businesses by the SIC Codes of your segments. I also believe www.advfn.com (free registration) has a stock screening tool that will allow you to search by SIC Code. I would examine the lists, however, to ensure that the companies are pure plays. Alternatively, you could use Damodaran's industry data and use the beta and capital structure estimates for different broad industry classifications. Those may function as a proxy for industry costs of capitals.