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