WACC
Weighted Average Cost of Capital. The blended return a company must earn to satisfy everyone funding it: the cost of equity weighted by equity market value, plus the after-tax cost of debt weighted by debt market value. It is the discount rate for unlevered free cash flow in a DCF, because those cash flows belong to debt and equity holders together. Use market values for the weights, never book.
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This term comes up constantly in valuation interviews and on the desk.
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