Fisher Comm - WACC Analysis

Fisher Comm (Weighted Average Cost of Capital (WACC) Analysis)



Helpful Information for Fisher Comm's Analysis

What is the WACC Formula? Analyst use the WACC Discount Rate (weighted average cost of capital) to determine Fisher Comm'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 Fisher Comm. Value Investing Importance? This method is widely used by investment professionals to determine the correct price for investments in Fisher Comm before they make value investing decisions. This WACC analysis is used in Fisher Comm's discounted cash flow (DCF) valuation and see how the WACC calculation affect's Fisher Comm's company valuation.

WACC Analysis Information

1. The WACC (discount rate) calculation for Fisher Comm uses comparable companies to produce a single WACC (discount rate). An industry average WACC (discount rate) is the most accurate for Fisher Comm over the long term. If there are any short-term differences between the industry WACC and Fisher Comm's WACC (discount rate), then Fisher Comm is more likely to revert to the industry WACC (discount rate) over the long term.

2. The WACC calculation uses the higher of Fisher Comm'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 Fisher Comm uses a significant proportion of equity capital.