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