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