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