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