WACC

Definition

Weighted Average Cost of Capital — the average rate a company pays for all its capital.

Visual Reference

Example

Investors use WACC to evaluate securities and make portfolio decisions.

In Practice

Also known as: Weighted Average Cost of Capital. Closely related to Cost of Capital, IRR.

Word Usage

Investment decisions; DCF valuation; Capital budgeting

Use Case

Applied in Investment & Markets contexts: Investment decisions; DCF valuation