New ratios preview (ROIC, WACC, and more)

marco
Sun, 15 Feb 2026 04:53:38 +0000

There seem to be two WACC. One cap weighted one book weighted. Perhaps easier to just add them both:

Market-Weighted WACC:

Moves with stock price

Penalizes overvalued companies

Low WACC often = high multiple stocks

Can unintentionally embed momentum/valuation exposure

Effect:
More cyclical. Higher turnover. Can distort IC depending on regime.

Book-Weighted WACC:

Much slower moving

Cleaner separation of capital structure from price

Often behaves more like a leverage/quality factor

Effect:
Lower noise. More stable cross-sectional ranking.