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