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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). The WACC formula derives the current cost of each form of finance, starting with the risk-free rate, the expected return on equity, and the costs associated with debt financing.

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). The WACC formula derives the current cost of each form of finance, starting with the risk-free rate, the expected return on equity, and the costs associated with debt financing.

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). The WACC formula derives the current cost of each form of finance, starting with the risk-free rate, the expected return on equity, and the costs associated with debt financing.

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Oil & Gas Investment Banking: The First Victim of the ESG Cult?

Brian DeChesare

For a good example, check out the presentation for Chevron’s acquisition of Noble Energy : “BOE” is “Barrel of Oil Equivalent,” a metric used to convert the energy produced by natural gas into the energy produced by oil to make a proper comparison. The entire Energy Services vertical is like a “high Beta” play on oil and gas prices.

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