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