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