+1

WAAC Chart (Weighted Average Cost of Capital).

Richard 7 years ago 0

I have been doing a course on Valuation by McKinsey (Great book).  The core concept is that Value is created by the spread between ROIC and WACC.  If a company's ROIC is higher than its WACC then the company creates value.  If its WACC is higher than its ROIC it is destroying value.


Growth, is an accelerate.  If the spread is positive. Growth creates value very quickly.  If the spread is negative, value is destroyed much more quickly.


It would be useful to have a WACC for the stocks.