New ratios preview (ROIC, WACC, and more)

yuvaltaylor
Sun, 15 Feb 2026 05:03:55 +0000

I can't find anyone who uses book-weighted WACC. Mauboussin, Damodaran, Mihir Desai, Stephen Penman--they all use the market value of equity. Who uses the book value? I haven't seen that in any textbook, and I've looked at a lot. Investopedia says it's the market value, so does SimplyWallSt. Analysts use market value of equity. Morningstar does too. Where are you getting this from? ChatGPT? It kind of looks like it. Don't do that: ChatGPT is terrible at accounting measures. It would fail every single final exam in any accounting class.