See how we rate investing products to write unbiased product reviews. Weighted average cost of capital (WACC) is a key metric that shows a company's cost of capital across its debt and equity.

The average cost of capital of the company is the sum of the costs of all long-term funding sources. Long-term investments comprise stocks, bonds, real estate, and cash on the asset side of a ...

Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.

The median return on capital employed (ROCE) in this segment has steadily decreased over the past four years, yet still surpassed the median weighted average cost of capital (WACC) by about 2.5 ...