Buckeye GP (Weighted Average Cost of Capital (WACC) Analysis)
 Improve your investment analysis with by seeing the Buckeye GP's Discounted Cash Flow analysis, Buckeye GP's Warren Buffet analysis, and Buckeye GP's Comparable Multiple analysis.  Helpful Information for Buckeye GP's AnalysisWhat is the WACC Formula? Analyst use the WACC Discount Rate (weighted average cost of capital) to determine Buckeye GP's investment risk. WACC Formula = Cost of Equity (CAPM) * Common Equity + (Cost of Debt) * Total Debt. The result of this calculation is an essential input for the discounted cash flow (DCF) analysis for Buckeye GP. Value Investing Importance? This method is widely used by investment professionals to determine the correct price for investments in Buckeye GP before they make value investing decisions. This WACC analysis is used in Buckeye GP's discounted cash flow (DCF) valuation and see how the WACC calculation affect's Buckeye GP's company valuation. |
WACC Analysis Information1. The WACC (discount rate) calculation for Buckeye GP uses comparable companies to produce a single WACC (discount rate). An industry average WACC (discount rate) is the most accurate for Buckeye GP over the long term. If there are any short-term differences between the industry WACC and Buckeye GP's WACC (discount rate), then Buckeye GP is more likely to revert to the industry WACC (discount rate) over the long term. 2. The WACC calculation uses the higher of Buckeye GP's WACC or the risk free rate, because no investment can have a cost of capital that is better than risk free. This situation may occur if the beta is negative and Buckeye GP uses a significant proportion of equity capital. |
