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