What is WACC (Cost of Capital)?
WACC (Cost of Capital) (also called weighted average cost of capital) — The blended rate a company pays to finance itself from debt and equity — the discount rate in a DCF.
In simple terms
Projects must earn more than the WACC to add value.
Why WACC (Cost of Capital) matters when you invest
Understanding wacc helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
WACC (Cost of Capital) — frequently asked questions
What is WACC (Cost of Capital)?
The blended rate a company pays to finance itself from debt and equity — the discount rate in a DCF.
What does WACC (Cost of Capital) mean in the stock market?
The blended rate a company pays to finance itself from debt and equity — the discount rate in a DCF. Projects must earn more than the WACC to add value.
Can you give an example of WACC (Cost of Capital)?
Projects must earn more than the WACC to add value.
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