Weighted Average Cost of Capital Formula By Matthew Frankel, CFP – Updated Jun 8, 2025 at 10:50PM Key Points ...

The weighted average cost of capital (WACC) calculates a company's cost of capital, proportionately weighing its use of debt and equity financing.

The weighted average cost of capital (WACC) is a financial ratio that measures a company's financing costs. It weighs equity and debt proportionally to its percentage of the total capital structure.

The weighted average cost of capital, or WACC, is a key business metric, usually expressed as a percentage or ratio, which measures the costs associated with raising funds through different ...

The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock. This formula can help you evaluate whether a company's stock is ...

Discover how the volume-weighted average price (VWAP) ratio can be used. See the formula and how to perform the calculation in Excel.

There is no fixed value that can be considered a “good” weighted average cost of capital (WACC) for a company, as the appropriate WACC will depend on a variety of factors, such as the industry ...

After-tax weighted average cost of capital: The same calculation method as detailed earlier but with the cost of debt modified to reflect the company's tax rate (since interest can be deducted).