<p>WACC is the weighted average cost of capital - the price of money for the firm. All else equal, lower is always better.</p>

CC BY-SA 4.0
2021-02-16T01:05:20.927Z
2021-02-16T01:05:20.927Z
jmabs
<p>I'm doing a statistical report of some italian banks and I'm looking for correlation between Corporate governance practices and bank values. I'm focusing on WACC and I would like to understand if an high value of WACC it's better than a lower value or vice versa.</p>

<econometrics><banking><value><corporate-governance>
is it better a low or high WACC for a company valuation?
Alessandro Recchia
# is it better a low or high WACC for a company valuation?

(Asked by: username_0 on 2021-02-15)

I'm doing a statistical report of some italian banks and I'm looking for correlation between Corporate governance practices and bank values. I'm focusing on WACC and I would like to understand if an high value of WACC it's better than a lower value or vice versa.

**Tags:** econometrics, banking, value, corporate-governance


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## 1 answers

### Answer by username_1 on 2021-02-16. Score: 1

WACC is the weighted average cost of capital - the price of money for the firm. All else equal, lower is always better.


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