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