How does the valuation of a company vary from the valuation of a project using wacc?

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asked Jun 8, 2024 131k views

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Isxek · Answer 1 · 2024-06-13T02:14:33+0000

Step-by-step explanation:

The WACC represents the minimum rate of return at which a company produces value for its investors. Let's say a company produces a return of 20% and has a WACC of 11%. For every $1 the company invests into capital, the company is creating $0.09 of value.

How does the valuation of a company vary from the valuation of a project using wacc?

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