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