Clear Channel (Weighted Average Cost of Capital (WACC) Analysis)
 Improve your investment analysis with by seeing the Clear Channel's Discounted Cash Flow analysis, Clear Channel's Warren Buffet analysis, and Clear Channel's Comparable Multiple analysis.  Helpful Information for Clear Channel's AnalysisWhat is the WACC Formula? Analyst use the WACC Discount Rate (weighted average cost of capital) to determine Clear Channel'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 Clear Channel. Value Investing Importance? This method is widely used by investment professionals to determine the correct price for investments in Clear Channel before they make value investing decisions. This WACC analysis is used in Clear Channel's discounted cash flow (DCF) valuation and see how the WACC calculation affect's Clear Channel's company valuation. |
WACC Analysis Information1. The WACC (discount rate) calculation for Clear Channel uses comparable companies to produce a single WACC (discount rate). An industry average WACC (discount rate) is the most accurate for Clear Channel over the long term. If there are any short-term differences between the industry WACC and Clear Channel's WACC (discount rate), then Clear Channel is more likely to revert to the industry WACC (discount rate) over the long term. 2. The WACC calculation uses the higher of Clear Channel'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 Clear Channel uses a significant proportion of equity capital. |