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