A
Glossary
Weighted Average Cost of Capital
Also: WACC
Essential — core valuation theory
What it measures
The company's overall cost of money — the hurdle every investment must beat. Lower is better.
Formula
(Ke × equity share) + (after-tax Kd × debt share)Benchmark
Typical 7-12% for mature firms
Related metrics
Source
McKinsey, Valuation (7th ed.) ch. 13