After-tax weighted average cost of capital: The same calculation method as detailed earlier but with the cost of debt modified to reflect the company's tax rate (since interest can be deducted).

Price weighted average = (Sum of prices) / (Number of stocks) For example, if you want to calculate a price-weighted average of four stocks with prices of $100, $70, $60, and $30, you can do so as ...

In a value-weighted index, a company with strong financials, even if its market cap is relatively smaller, could be more ...