This article provides real-world examples and applications of the WACC. It is a critical concept used by companies in investment decision-making. As an investor, you will gain valuable insights on how to use WACC to evaluate investment opportunities and make informed decisions. The Weighted Average Cost of Capital (WACC) is a financial concept. It highlights…
While the discounted cash flow (DCF) model is a widely used method for valuing stocks. But it is not without limitations. Let’s examine the limitations of discounted cash flow (DCF) model. The limitations are with respect to present value calculation based on the future growth rate, cash flow estimation, and discount rate. The article will…
The discount rate is nothing but our minimum expected rate of return from an investment. The concept of discount rate is used to calculate the present value of future cash flows originating from an investment. Why do we need to calculate the present value? It is a method to check if an investment is worth…
