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