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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

The beta factor is used to calculate the cost of equity in the WACC formula and is a measure of a stock’s systematic risk, or the risk associated with the overall market. For example, some of the industries with the highest WACCs include telecommunications, technology, utilities, media, pharmaceuticals, and oil & gas.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

The beta factor is used to calculate the cost of equity in the WACC formula and is a measure of a stock’s systematic risk, or the risk associated with the overall market. For example, some of the industries with the highest WACCs include telecommunications, technology, utilities, media, pharmaceuticals, and oil & gas.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

The beta factor is used to calculate the cost of equity in the WACC formula and is a measure of a stock’s systematic risk, or the risk associated with the overall market. For example, some of the industries with the highest WACCs include telecommunications, technology, utilities, media, pharmaceuticals, and oil & gas.