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