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