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