Category: WACC 2433

WACC is an acronym short for the weighted average cost of capital.  The WACC across a period of five years or a decade is often used as the DCF’s discount rate.  The purpose of using the WACC formula is to determine how a business raises funds, whether as a stock, bond or long-term debt.  WACC is commonly used as a hurdle r
Discounted Cash Flow or DCF for short, is a means of estimating the worth of a stock or other asset in the current moment with the use of projected cash flows.  DCF is important as it reveals the amount of money that can be spent on an investment in the moment to obtain the targeted return down the line.  DCF is used to cal