Glossary
/WACC Full Form
The full form of WACC is Weighted Average Cost of Capital.
Imagine a company funds itself using both bank loans and shareholder money. This percentage tells you the exact average cost of that mixed funding. If a company's WACC is 10% but it only generates 8% returns on its new projects, it is actually destroying value. Big institutional investors look at this number to decide if a stock is fundamentally cheap or way too expensive to hold.