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