Skip to content Skip to footer
« Back to Glossary Index

 WACC  = Weighted Average Cost of Capital. The  WACC is the weighted average of the return expectations of the funding sources (equity, liablilities, accruals) of a company. The weighting factor is the ratio of the funding source to the total funds, e.g. the equity ratio. In investment theory the  WACC is the discount rate for the future cashflows out of the investment. See also Capital costs.