Grupo Aeroportuario del Sureste - WACC Analysis

Grupo Aeroportuario del Sureste (Weighted Average Cost of Capital (WACC) Analysis)

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Helpful Information for Grupo Aeroportuario del Sureste's Analysis

What is the WACC Formula? Analyst use the WACC Discount Rate (weighted average cost of capital) to determine Grupo Aeroportuario del Sureste'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 Grupo Aeroportuario del Sureste. Value Investing Importance? This method is widely used by investment professionals to determine the correct price for investments in Grupo Aeroportuario del Sureste before they make value investing decisions. This WACC analysis is used in Grupo Aeroportuario del Sureste's discounted cash flow (DCF) valuation and see how the WACC calculation affect's Grupo Aeroportuario del Sureste's company valuation.

WACC Analysis Information

1. The WACC (discount rate) calculation for Grupo Aeroportuario del Sureste uses comparable companies to produce a single WACC (discount rate). An industry average WACC (discount rate) is the most accurate for Grupo Aeroportuario del Sureste over the long term. If there are any short-term differences between the industry WACC and Grupo Aeroportuario del Sureste's WACC (discount rate), then Grupo Aeroportuario del Sureste is more likely to revert to the industry WACC (discount rate) over the long term.

2. The WACC calculation uses the higher of Grupo Aeroportuario del Sureste'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 Grupo Aeroportuario del Sureste uses a significant proportion of equity capital.