According to our 10-year reverse DCF model (8.2% WACC and 2% FCF growth in perpetuity), the market is anticipating a 1.3% top-line growth, which we believe is conservative against a three-year historical average of 3.7% (Y/Y).

Source: https://seekingalpha.com/article/4573706-comcast-stock-q4-2022-earnings-short-term-challenges-fundamentals-solid-hold?source=feed_all_articles

A higher WACC means the company needs to make a bigger profit to ensure its operations.

Source: https://newsinfo.inquirer.net/1864349/surigao-del-sur-rep-suggests-abolishing-erc-due-to-meralco-wacc-issue

And with a 19x P/E, we believe that the company is fairly priced in at €110 per share ($11.9 in ADR), and this is also supported by a reverse DCF with an EBIT margin of 18% and a WACC of 8% using a terminal growth of 3%.

Source: https://seekingalpha.com/article/4590051-porsche-ag-stock-racing-towards-20-percent-ros?source=feed_all_articles

Based on a discount rate of 9.6% (company’s WACC) and terminal value based on the average chipmaker EV/EBITDA of 17.13x, our model shows an upside of 13.84%.

Source: https://seekingalpha.com/article/4653780-texas-instruments-best-semiconductor-dividend-stock-to-buy?source=feed_all_articles

Discounted Cash Flow (DCF) Analysis: This method involves estimating the company’s future cash flows and then discounting them back to the present value using an appropriate discount rate, often the company’s Weighted Average Cost of Capital (WACC).

Source: https://southafricatoday.net/business/key-factors-considered-by-investors-when-valuing-a-business/

However, if we compare the company's recent ROIC figures to its weighted average cost of capital or the WACC, we can see that the company is not creating value for investors since the WACC is about double the ROIC and that is not a good sign.

Source: https://seekingalpha.com/article/4640361-unifirst-margins-to-continue-to-suffer-but-it-is-too-expensive-to-buy-still?source=feed_all_articles

However, if we compare the company's recent ROIC figures to its weighted average cost of capital or the WACC, we can see that the company is not creating value for investors since the WACC is about double the ROIC and that is not a good sign.

Source: https://seekingalpha.com/article/4640361-unifirst-margins-to-continue-to-suffer-but-it-is-too-expensive-to-buy-still?source=feed_all_articles

I used a WACC of 8.50%, a growth rate of 2.50%, and a 13.00x EV/EBITDA multiple.

Source: https://seekingalpha.com/article/4642259-microsoft-well-diversified-top-tier-management-and-undervalued?source=feed_all_articles

So my WACC is only 0.3% higher than JPM's - 12.6%.

Source: https://seekingalpha.com/article/4568946-tesla-stock-go-fishing-below-100?source=feed_all_articles

Taking a WACC of 7.6%, I estimate Microsoft's fair value at $363.4 per share, which represents a 17.6% upside compared to the market price at the time of writing.

Source: https://seekingalpha.com/article/4604933-microsoft-good-luck-beat-bundling-power?source=feed_all_articles

Taking a WACC of 8.9% and adding its net debt position, I estimate Kering's fair value at €526 per share, which amounts to $564 per PPRUF ADR based on the current USD/EUR ratio.

Source: https://seekingalpha.com/article/4629865-kering-major-management-reorganization-amidst-continued-underperformance?source=feed_all_articles

The firm's ROIC (18% in 2022) is also higher than my calculated WACC of 9.06%, which means the company is healthy and growing.

Source: https://seekingalpha.com/article/4631289-three-reasons-on-why-i-like-cdw-corporation?source=feed_all_articles

The wrong computation from 2012 to 2015 and the WACC, which according to Congressman Dan Fernandez, should have gone down from 14.97 percent to around 10 or 11 percent.

Source: https://businessmirror.com.ph/2023/12/04/meralco-must-return-%e2%82%b1150b-to-its-customers-erc-told/?utm_source=rss&utm_medium=rss&utm_campaign=meralco-must-return-%25e2%2582%25b1150b-to-its-customers-erc-told

With a conservative multiple EV/FCF of 12x and a WACC of 12.8% million, the implied enterprise value would be $9.929 billion.

Source: https://seekingalpha.com/article/4612230-light-wonder-sciplay-further-rd-efforts-would-imply-undervaluation?source=feed_all_articles

With the sensitivity test below, we can see that the stock is undervalued only if its free cash flow margin increases above 25% or WACC drops below 10%.

Source: https://seekingalpha.com/article/4593942-seaworld-confronts-an-inflation-monster?source=feed_all_articles