LDK - EditGrid by babbian

VIEWS: 0 PAGES: 15

									            Discounted Cash Flow (DCF) S.A. includes Co. Ltd. was created by Wikiwealth.com, your source for investment research
Investment research analysis for Wavecom for LDK Solar the WACC, discounted cash flow, EV Multiple, and Warren Buffett Calculator.and analysis.                                                                            Warren Buffett calculation for LDKfor investmentCo. Ltd. was created by Wikiwealth.com, your for investment research and analysis.
                                                                                                                                                                                                                                    WACC (discount rate) Solar Solar was created analysis.
                                                                                                                                                  Enterprise Value (EV) multiple analysis for LDK Solar Co. Ltd. was created by Wikiwealth.com, your sourcefor LDKCo. Ltd.research and by Wikiwealth.com, your sourcesource for investment research and analysis.




                                                                                                            -HOLD
 -HOLD




    -3%
                                                                                                                                                                                                                                                                                                                                                                               Home Page                                                   LDK S
                                                                                                                                                                                                                                                                                                                                                                               Full Research Report


                                                                                              Try The Experimental Mode for LDK                                                                                                                                                                                                                                               Enter Experimental Mode   Millions USD


                                                                             Target Price                                                                                                                                                                                   Potential Change

                                                                                  $3.1                                                                                                                                                                                        (3.4%)                                                                                          -HOLD                     Total Revenue
                                                                                                                                                                                                                                                                                                                                                                                                        % growth rate

                                                                                       Last Price                                                                                                                                                                                                              Riskiness                                                        Cash Flow Potential     - COGS
                                                                                                                                                                                                                                                                                                                                                                                                        % of revenue
                                                                                  $3.2                                                                                                                                                                       Medium                                                                                                              (2%)                   Gross Profit
                                                                                                     Analysis (rating, weight, potential)                                                                                                                                                                                                                                                               % of revenue
              Cash Flow                                                                                                                                -HOLD                                                                                                                                                     90%                                                  (2%)        Potential Price
              Comparative                                                                                                                                          SELL                                                                                                                                                     0%                                      (100%)                              - Operating Exp
              Buffett Calc
              Conclusion
                                                                                                                                                       -HOLD
                                                                                                                                                       -HOLD                                                                                                                                          100%
                                                                                                                                                                                                                                                                                                                 10%                                                 (15%)
                                                                                                                                                                                                                                                                                                                                                                      (3%)          $3                  % of revenue


                                                                                                                                                                                                                                                                                                                                                                                                        - SG&A (Op Ex)
                                                           Important Statistics & LDK SWOT Analysis                                                                                                                                                                                                                                                                               Last Stock Price      % of revenue
              WACC                                                                                                                                                                     7% Div Yield                                                                                                                                                                    n/a
              Cost of Debt
              Cost of Equity
                                                                                                                                                                                       5% ROIC
                                                                                                                                                                            19% PEG Ratio
                                                                                                                                                                                                                                                                                                                                                                      16%
                                                                                                                                                                                                                                                                                                                                                                       0.0          $3                  EBITDA
                                                                                                                                                                                                                                                                                                                                                                                                        % of revenue
              Implied Debt Cost                                                                                                                                                        3% Market Cap                                                                                                                                                                  486
              Risk Free Rate                                                                                                                                           3.2% Reinvest                                                                                                                                                                                  68%                               - D & A (Op Ex)
              Interest Coverage                                                                                                                                          1.6 x Beta                                                                                                                                                                                   2.80                              % of revenue


                                                                                          Top Competitor → Click To See All                                                                                                                                                                                                                                                                             EBIT (oper profits)
              LDK Solar (LDK)                                                                                                                                                                                                                                                                                                                                       -HOLD                               % of revenue
              Canadian Solar (CSIQ)
              ReneSola (SOL)                                                                                                                                                                                                                                                                                                                                                                            - Taxes
              Suntech Power (STP)                                                                                                                                                                                                                                                                                                                                                                       % of EBIT
              Trina Solar (TSL)
              Solarfun Power (HSOL)                                                                                                                                                                                                                                                                                                                                                                     NOPAT
              China Sunergy (CSUN)                                                                                                                                                                                                                                                                                                                                                                      % of revenue
              JA Solar (JASO)
              Yingli Green Energy (YGE)
              Evergreen Solar (ESLR)
              MEMC Electronic Materials (WFR)                                                                                                                                                                                                                                                                                                                                                           +D&A
                                                                                                                                                                                                                                                                                                                                                                                                        % of revenue
              Financial Stats                                                                                                                                                                                                       Competitors                                                                                                                       LDK
              Revenue Growth                                                                                                                                                                                                                                                                                     50%                                                 177%                               - CapEx
              EBITDA Margin                                                                                                                                                                                                                                                                                      10%                                                  18%                               % of revenue
              EBIT Margin                                                                                                                                                                                                                                                                                                   7%                                        13%
              Cash Flow Margin                                                                                                                                                                                                                                                                                              7%                                       -49%                               Working Capital
              Taxes                                                                                                                                                                                                                                                                                              19%                                                   6%                               % of revenue
              Debt / Equity                                                                                                                                                                                                                                                                           372%                                                           524%
              Return On Equity                                                                                                                                                                                                                                                                            -80%                                                        56%                               - WC Investment
                                                                                                                                                                                                                                                                                                                                                                                                        % of revenue
              Multiple Stats                                                                                                                                                                                                                                                                                                                                          LDK
0.92786

              Revenue (x)                                                                                                                                                                                                                                                                                     0.7 x                                                  0.9 x                              Free Cash Flow
3.93243

              EBITDA (x)                                                                                                                                                                                                                                                                                      3.9 x                                                  3.9 x                              % of revenue
5.37644

              EBIT (x)                                                                                                                                                                                                                                                                                        5.4 x                                                  5.4 x
-7.89153

              Cash Flow (x)                                                                                                                                                                                                                                                                            -7.9 x                                                        -7.9 x                             Present Value Factor
4.79012

              Book Value (x)                                                                                                                                                                                                                                                                                  3.2 x                                                  4.8 x
1.78676

              PE Ratio (x)                                                                                                                                                                                                                                                                             -4.4 x                                                        1.8 x                              Present Value of Free Cash Flows
                                Conclusion: Per Share Value


                                Invested Capital (Equity and Debt) Value
                                + Excess Cash
                                - Interest Bearing Debt, Preferred and Minority I


                                Equity Value (Net Present Value)


                                Divide: Shares Outstanding

                                Fair Value per Share


Notes on Analysis:
1. All numbers are in millions of US dollars. For valuation purposes, the currenc
                                     LDK Solar (LDK) - Discounted Cash Flow Analysis (DCF)

                                     Historical Year Ended                                                                  Projected Year Ending
                       2007        2008         2009        2010      2011         2012       2013      2014       2015        2016      2017       2018


                         105          524        1,643       1,098     2,509       2,509      2,885     3,174      3,301        3,433    3,570      3,713
                         n/a       399.0%      213.5%       -33.2%    128.5%        0.0%      15.0%     10.0%       4.0%        4.0%      4.0%       4.0%


                          64          354        1,471       1,212     1,952       2,183      2,510     2,761      2,872        2,987    3,106      3,230
                       61.0%        67.6%       89.5%       110.4%    77.8%        87.0%      87.0%     87.0%      87.0%       87.0%     87.0%      87.0%


                          41          170          172        (114)     557          326        375       413        429         446       464        483
                       39.0%        32.4%       10.5%       -10.4%    22.2%        13.0%      13.0%     13.0%      13.0%       13.0%     13.0%      13.0%


                              4        23           67        104       124          134        154       169        176         183       191        198
                        3.8%         4.4%        4.1%        9.5%      4.9%         5.3%       5.3%      5.3%       5.3%        5.3%      5.3%       5.3%


                              1           8         31         33        (35)       (105)      (213)     (335)      (453)        (581)    (718)      (865)
                        1.0%         1.5%        1.9%        3.0%      -1.4%       -4.2%       -7.4%    -10.6%     -13.7%     -16.9%     -20.1%     -23.3%


                          40          162          141        (147)     592          431        588       748        883        1,027    1,182      1,348
                       38.1%        30.9%        8.6%       -13.4%    23.6%        17.2%      20.4%     23.6%      26.7%       29.9%     33.1%      36.3%


                           3           15          36          71       159          239        367       504        630         764       908      1,063
                        2.9%         2.9%        2.2%        6.5%      6.3%         9.5%      12.7%     15.9%      19.1%       22.3%     25.4%      28.6%


                          37          147          105        (218)     433          192        221       243        253         263       274        284
                       35.2%        28.1%        6.4%       -19.9%    17.3%         7.7%       7.7%      7.7%       7.7%        7.7%      7.7%       7.7%


                              0        (1)              5      (21)      66           38         44        49         51          53        55         57
                        0.0%        -0.7%        4.8%        9.6%     15.2%        20.0%      20.0%     20.0%      20.0%       20.0%     20.0%      20.0%


                          37          148          100        (197)     367          154        177       195        202         210       219        228
                       35.2%        28.2%        6.1%       -17.9%    14.6%         6.1%       6.1%      6.1%       6.1%        6.1%      6.1%       6.1%

                                                                             Free Cash Flow to the Firm Analysis


                              3        15           36         71       159          239        367       504        630         764       908      1,063
                        2.9%         2.9%        2.2%        6.5%      6.3%         9.5%      12.7%     15.9%      19.1%       22.3%     25.4%      28.6%


                          80          329        1,298        840       960          878      1,010     1,111      1,155        1,202    1,250      1,300
                       76.2%        62.8%       79.0%       76.5%     38.3%        35.0%      35.0%     35.0%      35.0%       35.0%     35.0%      35.0%


                          78          265           54        (281)     (420)       (420)      (483)     (531)      (553)        (575)    (598)      (622)
                       74.3%        50.6%        3.3%       -25.6%    -16.7%      -16.7%      -16.7%    -16.7%     -16.7%     -16.7%     -16.7%     -16.7%


                          n/a         187         (211)       (335)     (139)             0      (63)      (48)       (21)        (22)      (23)       (24)
                         n/a        35.7%      -12.8%       -30.5%     -5.5%        0.0%       -2.2%     -1.5%      -0.6%       -0.6%     -0.6%      -0.6%


                          n/a        (353)        (951)       (631)     (295)       (485)      (403)     (364)      (302)        (205)      (99)       15
                         n/a       -67.4%      -57.9%       -57.5%    -11.8%      -19.3%      -14.0%    -11.5%      -9.2%       -6.0%     -2.8%      0.4%


Present Value Factor              Industry WACC                7%                  0.933      0.871     0.813      0.759        0.708    0.661      0.617


Present Value of Free Cash Flows              Lt Grth          3%                   (453)      (351)     (296)      (229)        (145)      (66)           9
Conclusion: Per Share Value                                                                       Working Capital Inputs               2007      2008


nvested Capital (Equity and Debt) Value                                        2,318              Current Assets                       173        742
                                                                                 706              - Excess Cash                         35        219
- Interest Bearing Debt, Preferred and Minority Interest                       2,548              - Current Liabilities                117        522
                                                                                                  + Short Term Debt                     57        264
Equity Value (Net Present Value)                                                 476              Working Capital                       78        265
                                                                                                  % of revenue                       74.3%     50.6%
Divide: Shares Outstanding                                                       150
                                                                                                  Interest Exp (net)                      7        10
Fair Value per Share                                                               $3             Total Debt                            87        289



US dollars. For valuation purposes, the currency and stock price do not matter, because potential is a relative figure. The higher the potential the better.
 is (DCF)                                       Home Page                                                                  LDK Solar (LDK) -
                                                 Full Research Report


Year Ending                                    Enter Experimental Mode                                          Ent Value       Revenue Growth
              2019      2020      Stable >                                                                       Current         -1yr


              3,862
               4.0%
                        4,016
                         4.0%
                                    4,136
                                     3.0%
                                                  SELL                       LDK Solar
                                                                             Canadian Solar
                                                                                                                    2,328
                                                                                                                        644
                                                                                                                               129%
                                                                                                                                27%
                                                                             ReneSola                                   768    -18%
              3,360     3,494       3,599         Multiples Potential        Suntech Power                          2,310        8%
              87.0%     87.0%      87.0%                                     Trina Solar                            2,591       10%


                502       522         538
                                               (100%)                        Solarfun Power
                                                                             China Sunergy
                                                                                                                    2,954
                                                                                                                        404
                                                                                                                               -15%
                                                                                                                                 9%
              13.0%     13.0%      13.0%                                     JA Solar                               4,626        -9%
                                                    Potential Price          Yingli Green Energy                   16,085       17%
                206       214         221                                    Evergreen Solar
               5.3%      5.3%        5.3%
                                                        $0                   MEMC Electronic Materials              1,551       21%


              (1,022)   (1,191)    (1,227)                                   Low Value                                  404    -18%
              -26.5%    -29.7%     -29.7%          Last Stock Price          High Value                            16,085       27%
                                                                             Average Value                          3,548        6%
              1,524
              39.5%
                        1,713
                        42.7%
                                    1,765
                                   42.7%
                                                        $3                   Median Value                           2,310        9%

                                                                                                  LDK Solar vs. their Competitors (+ means target compa
              1,229     1,406      1,448                                                                        Ent Value       Revenue Growth
              31.8%     35.0%      35.0%                                     Low Value                              +           +
                                                                             High Value                                         +
                296       308         317                                    Average Value                                      +
               7.7%      7.7%        7.7%                                    Median Value                           +           +
                                                                             Advantages v. Competitors            50%          81%
                 59        62          63
              20.0%     20.0%      20.0%     Notes on Analysis:
                                             1. WikiWealth uses quantitative measures to determine the multiple range.
                237       246         254    2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to debt hold
               6.1%      6.1%        6.1%    3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute EV to competito
                                             4. We exclude outliers in the individual company multiples.

                                             Additional Calculations
              1,229     1,406       1,448
              31.8%     35.0%      35.0%                                                                                 Financial Analysis
                                             Stock Research                                                   Revenue         EBITDA
              1,352     1,406       1,448
              35.0%     35.0%      35.0%     LDK Solar                                                               2,509       592
                                             Canadian Solar                                                         1,899        68
               (646)     (672)               ReneSola                                                                   985     116
              -16.7%    -16.7%               Suntech Power                                                          3,147      (491)
                                             Trina Solar                                                            2,048        87
                 (25)      (26)       (27)   Solarfun Power                                                         6,416      (758)
               -0.6%     -0.6%      -0.6%    China Sunergy                                                              566      (66)
                                             JA Solar                                                              10,733      (122)
                139       272         280    Yingli Green Energy                                                   14,678     (2,122)
               3.6%      6.8%        6.8%    Evergreen Solar
                                             MEMC Electronic Materials                                              2,716     (1,073)
              0.575     0.537       0.537
                                             Average Value                                                           4,570      -377
                 80       146       3,622
                               2009     2010     2011


                           1,238      1,397    1,975
                               339      454      706
                           1,511      2,238    3,585
                               666    1,014    1,896
                                54     (281)    (420)
                           3.3%       -25.6%   -16.7%


                                49       50       95
                           1,261      1,864    2,548



er the potential the better.
          LDK Solar (LDK) - Comparative (EV) Multiples

                Revenue Growth           EBITDA Margin                EBIT Margin        Cash Flow Margin           Enterprise Value Multiples
                        -5yr     +5yr   -1yr     -5yr   +5yr      -1yr    -5yr   +5yr    -1yr   -5yr   +5yr    Rev         EBITDA        EBIT        FCF


                      177%        7%    17%     18%     24%       8%      13%       8% -19%     13% -12%        0.9 x         3.9 x       5.4 x       -7.9 x Include
                       70%        7%    11%       5%    12%       7%       3%       7%   -6%    3%     -2%      0.3 x          n/m         n/m          n/m Include
                       66%        7%    21%       8%    24%       11%      4%    11%     -2%    4%      1%      0.8 x          n/m         n/m          n/m Include
                       28%        5%     6%       7%    11%       1%       4%       5%   -5%    4%      0%      0.7 x          n/m         n/m          n/m Include
                                         Wikiwealth
                       77%        6%    17%  15% 20%              13%     13%    13%     -4%    13%     1%      1.3 x          n/m         n/m          n/m Include
                                         :
                       42%        5%    11%   3% 12%              7%       1%       7%   -1%    1%      0%      0.5 x          n/m         n/m          n/m Include
                                         Reliant on
                       41%        4%     2% 19%     2%            0%      18%       0%    9%    18%     1%      0.7 x          n/m         n/m          n/m Include
                                         governme
                       69%        5%    11%       9%    13%       7%       7%       7%   -2%    7%     -1%      0.4 x          n/m         n/m          n/m Include
                       43%        6%    17%       9%    21%       12%      7%    12%     -7%    7%     -2%      1.1 x          n/m         n/m          n/m Include
                                                                                                                                                               Include
                       19%        6%    15%     14%     17%       6%       7%       6%   -2%    7%     -1%      0.6 x          n/m         n/m          n/m Include


                       19%        4%     2%       3%        2%    0%       1%       0%   -7%    1%     -2%     0.3 x         3.9 x       5.4 x       -7.9 x
                       77%        7%    21%     19%     24%       13%     18%    13%      9%    18%     1%     1.3 x         3.9 x       5.4 x       -7.9 x
                       50%        6%    12%     10%     15%       7%       7%       7%   -2%    7%      0%     0.7 x         3.9 x       5.4 x       -7.9 x
                       43%        6%    11%       9%    13%       7%       7%       7%   -2%    7%      0%     0.7 x         3.9 x       5.4 x       -7.9 x

s. their Competitors (+ means target company ratios better than competitor ratios)                                         Concluded Range
                Revenue Growth           EBITDA Margin                EBIT Margin        Cash Flow Margin      High          Ave     Ave      Ave
                        +        +      +        +          +     +       +         +           +                          Concluded Multiple
                        +                                                                                      0.7 x         3.9 x       5.4 x       -7.9 x
                        +        +      +        +          +     +       +         +           +                      Potential per Multiple
                        +        +      +        +          +     +       +         +           +             -101%          0%          0%          -479%
                        =       High    69%      =      Ave      69%      =      Ave     31%    =      Ave    Conclusion                             (145%)



iple range.
quity holders plus interest owed to debt holders.
 Wealth compares absolute EV to competitors.




        Financial Analysis                     Enterprise Value Calculation                                   Rev          EBITDA        EBIT        FCF
                     EBIT       FCFF
                                               Current Financial Results                                        2,509          592         433         -295
                        433      -295          Multiple x                                                       0.7 x         3.9 x       5.4 x        0.0 x
                            7    (22)          Multiple Calculation                                             1,836        2,328       2,328             0
                         33      (55)
                       (633) (801)             Enterprise Value
                         31      (26)          Less: Total Debt                                                 2,548        2,548       2,548        2,548
                       (977) #####             Plus: Excess Cash                                                    706        706         706          706
                        (80)     (71)          = Stock Holder's Equity Capital                                       -6        486         486       -1,842
                       (420) #####
                      ##### #####              Divide: Shares Outstanding                                           150        150         150          150
                                               = Fair Value per Share                                                  0             3           3      -12
                      ##### #####
                                               Current Stock Price                                                 3             3           3           3
                       -555 -1,265             Potential Stock Increase                                        -101%            0%          0%       -479%
   Home Page                                                        LDK Solar (LDK) - Warren Buffett Valu
   Full Research Report


 Enter Experimental Mode                            Historical Financials (% of revenue)
                              Financial Results         2007     2008     2009     2010    2011    Ave


  -HOLD                       Revenue Growth
                              Gross Profit
                                                           n/a
                                                          39%
                                                                 399%
                                                                   32%
                                                                          214%
                                                                            10%
                                                                                    -33%
                                                                                    -10%
                                                                                           129%
                                                                                            22%
                                                                                                  177%
                                                                                                  19%
                              EBITDA Margin               38%      31%       9%     -13%    24%   18%
      Buffett Potential       EBIT Margin                 35%      28%       6%     -20%    17%   13%
                              Tax Rates                    0%      -1%       5%      10%    15%    6%

    (15%)                     NOPAT
                              D&A
                                                          35%
                                                           3%
                                                                   28%
                                                                    3%
                                                                             6%
                                                                             2%
                                                                                    -18%
                                                                                      6%
                                                                                            15%
                                                                                             6%
                                                                                                  13%
                                                                                                   4%

       Potential Price        Capital Expenditure         76%      63%      79%      77%    38%   67%


        $3
                              Working Capital Inv         74%      51%       3%     -26%   -17%   17%
      Last Stock Price


        $3                    Free Cash Flow               n/a    -67%     -58%     -57%   -12%   -49%

     Investment Score


      15%
Notes on Analysis:
1. The Warren Buffett Valuation model is an experimental model developed to mimic the investment approach used by Warren Buffett, the
 (LDK) - Warren Buffett Value Calculator                                                                                         Home Page
                                                                                                                                  Full Research Report
                                                                                                                     \




                       Buffett          Criteria / Questions / Score            Buffett Intrinsic Value Calc
                       Results
                                                                                                                         WACC
                         9%       Consistency                                   Buffett Formula (FCF/RFR)                WACC Inputs
                        75%       Consistency                                                                            Risk Free Rate
                        15%       Consistency                               Free Cash Flow (fcf)             (577)       Cost of Debt
                        13%       Consistency                               Risk-Free Rate (rfr)             6.2%        Equity Risk Prem
                        30%       Consistency                               Buffett Fair Value (EV)     (9,306)          Alpha
                         9%       Consistency                                                                            Country Risk Premium
                         3%       Consistency           Pass       5%           Enterprise Value (EV) Calc
                                                                                                                         Industry WACC Calculation
                         5%       Consistency           Pass       5%       + Cash                           706         Beta (unlevered)
                                  < Buffett Portfolio                       - Debt & Minority Int           2,548        Industry D/E
                                  Low                                       Equity Capital             (11,148)          Tax Rate (5 yrs)
                                                                                                                         Beta (relevered)
                         0%       Consistency                               Shares                           150
                                  < Buffett Portfolio                                                                    Cost of Debt (after-tax)
                                  < Rev Growth          Pass       5%       Potential Stock Price       $       -        Debt / Capital
                                                                            Current Stock Price        $        3        WAC (debt)
                         6%       Consistency                               Potential Return                -100%
                                  > Buffett Portfolio                       Investment Score                 15%         Cost of Equity (capm)
                                                                                                                         Equity / Capital
                                  Investment Score                 15%      Adjusted Potential              -15%         WAC (equity)


                                                                                                                         WACC Conclusion




                                                                                                                         Notes on Analysis:
e investment approach used by Warren Buffett, the most successful investor of all time.
                                                                                                                         1. The WACC (discount rate) calculation uses c
                                                                                                                         over the long term. If there are any short-term d
                                                                                                                         likely to revert to the industry WACC (discount r


                                                                                                                         2. The WACC calculation uses the higher of the
                                                                                                                         occur if the beta is negative and the company us
    Home Page                                                               LDK Solar (LDK) - WACC Discount Rate
    Full Research Report


                                                                    Calculation to Find the Industry Average Estimates for the WACC Calculation (Millions USD)
                        7%
                                                                                                         Beta
                                     Name (click for report)                                Price       levered   Debt     Shares    Equity   Capital
                             3.2%
                             5.0%    LDK Solar                                          $           3    2.80      2,548      150       486    3,034
                             5.0%    Canadian Solar                                     $           4    3.16       834        44       154      988
                             3.0%    ReneSola                                           $           2    3.18       827       174       320    1,147
                             0.0%    Suntech Power                                      $           3    3.05      2,311      180       491    2,802
                                     Trina Solar                                        $           7    3.19       595       397     2,787    3,382
stry WACC Calculation                Solarfun Power                                     $           1    2.50      4,321      496       610    4,931
                              0.63 China Sunergy                                        $           2    2.62       531        45        82      613
                           362.2%    JA Solar                                           $           1    3.06      6,115     1,690    2,400    8,515
                            20.0%    Yingli Green Energy                                $           4    3.04     16,114     1,582    5,584   21,698
                              2.47 Evergreen Solar                                      $           -
                                     MEMC Electronic Materials                          $           4    1.30      1,406      241       856    2,262
                             4.0%
                            78.4%    Median (middle #)                                                   3.05      1,859      211       551    2,918
                             3.1%


                            18.6%
                            21.6%
                             4.0%


                             7.2%




he WACC (discount rate) calculation uses comparable companies to produce a single WACC (discount rate). An industry average WACC (discount rate) is the most accurate
 the long term. If there are any short-term differences between the industry WACC and an individual company's WACC (discount rate), then the companies WACC (discount
  to revert to the industry WACC (discount rate) over the long term.


he WACC calculation uses the higher of the WACC or the risk free rate, because no investment can have a cost of capital that is better than risk free. This situation may
 r if the beta is negative and the company uses a significant proportion of equity capital.
iscount Rate

ACC Calculation (Millions USD)


                        Debt       Debt               Beta
                       Equity     Capital   Tax %    unlever


                       524.3%      84.0%     20.0%      0.54 Include
                       541.6%      84.4%     30.0%      0.66 Include
                       258.3%      72.1%     20.0%      1.04 Include
                       470.3%      82.5%     15.0%      0.61 Include
                        21.3%      17.6%     10.3%      2.68 Include
                       708.3%      87.6%     20.0%      0.38 Include
                       644.8%      86.6%     20.0%      0.43 Include
                       254.8%      71.8%     20.0%      1.01 Include
                       288.6%      74.3%     20.0%      0.92 Include


                       164.3%      62.2%     20.0%      0.56 Include


                       379.4%      78.4%     20.0%      0.63




e WACC (discount rate) is the most accurate for a company
t rate), then the companies WACC (discount rate) is more



better than risk free. This situation may

								
To top