Though WACC stands for the weighted average cost of capital, don't be confused by the concept of "cost." The cost of capital is essentially the opportunity cost of using the company's capital in a ...
Marshall Hargrave is a stock analyst and writer with 10+ years of experience covering stocks and markets, as well as analyzing and valuing companies. David Kindness is a Certified Public Accountant ...
Cost of capital is a term that investors and companies use to express how much it costs a firm to obtain funding for projects. This rate is used as a benchmark to evaluate potential investment ...
This measurement for gauging whether a company is using its assets well may be a good tool for company managers and executives, but its results aren't so informative for investors. Investing is one of ...
Analysts use the return on invested capital (ROIC) metric to evaluate a company's capital allocation decisions. In particular, it's common to use ROIC in comparison with a company's weighted average ...