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