Reviewed by Margaret James Fact checked by Vikki Velasquez Companies and investors review the weighted average cost of ...

and add it to the product of equity cost and weight, as shown in this image: You should now have an Excel spreadsheet that has calculated this company's WACC: Each WACC is high or low depending on ...

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.

Weighted average cost of capital (WACC) is a key metric that shows a company's cost of capital across its debt and equity. If a company's WACC is elevated, the cost of financing for the company is ...