Perusahaan Satlt - WACC Analysis

Perusahaan Satlt (Weighted Average Cost of Capital (WACC) Analysis)



Helpful Information for Perusahaan Satlt's Analysis

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

WACC Analysis Information

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

2. The WACC calculation uses the higher of Perusahaan Satlt'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 Perusahaan Satlt uses a significant proportion of equity capital.