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