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