# Cost of Equity

*Saving & Investing — Finicade finance glossary*

The return shareholders demand for the risk of owning a company's stock — often estimated with CAPM. It's what equity 'costs' the firm, and a key input into WACC and any valuation.

**Related terms:** [CAPM (Capital Asset Pricing Model)](https://finicade.com/glossary/capm), [WACC](https://finicade.com/glossary/wacc), [Risk Premium](https://finicade.com/glossary/risk-premium)

**Taught in:** Charter Climb — Cost of Capital & Structure

Source: https://finicade.com/glossary/cost-of-equity