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