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