Marshall Hargrave is a stock analyst and writer with 10+ years of experience covering stocks and markets, as well as analyzing and valuing companies. David Kindness is a Certified Public Accountant ...

Cost of capital is a term that investors and companies use to express how much it costs a firm to obtain funding for projects. This rate is used as a benchmark to evaluate potential investment ...

Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.

ERSE will maintain the WACC for 2026-2029, adjustable annually based on 10-year Portuguese government bond yields, with a floor of 5.50% and a cap of 8.50%.

Analysts use the return on invested capital (ROIC) metric to evaluate a company's capital allocation decisions. In particular, it's common to use ROIC in comparison with a company's weighted average ...