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