WACC is important for both investors and companies. Reviewed by Samantha Silberstein. Fact checked by Vikki Velasquez. There ...

Conversely, a lower WACC signals relatively low financing cost and less risk. "The formula uses the cost of each of the sources of capital and weighs them relevant to the market value of the ...

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.

Companies and investors review the weighted average cost of capital (WACC) to evaluate the returns that a firm needs to realize to meet all of its capital obligations, including those of creditors ...