catcherintherye
Player Valuation: £80m
There you go again.
WACC is not the cost of borrowing money. You post absolute rubbish and then when someone challenges you on your completely idiotic postings you accuse them of being a Liverpool fan. That is why you get away with posting nonsense.
WACC isn't the cost of borrowing money. It is a formula that enables investors to see the cost of capital, you clown. The cost of debt is one of six variables used to calculate WACC. (five if you accept that V is the combination of Market value of the firm’s equity + Market value of the firm’s debt)
Being able to calculate WACC is one of the key pillars of investing. Pretty amazing that someone who claims to be a master investor doesn't even know the basics.
You're the only person who's said I'm a master investor not me.
WACC is the cost the business has to acquire capital, so in essence the figure they will pay to access liquidity. So it function in a way akin to how borrowing capital exists. Of course there are subtle difference, but the wider point is, even successful businesses with very wealthy owners are comfortable to pay a premium, and often a premium above 7%. Thats the point you seem to be lost with.
As it happens, the WACC is not really a central feature of most investors. They will look at ROIC in isolation, PE, FCF, revenue growth, profit growth, PB ratio, inventory etc are all prioritised over WACC. I quite like WACC though and will utilise it (hence why I pointed out that the WACC rate for Amazon is over the rate we are paying on our loan). As you seem to think I can't calculate WACC would you be able to offer the actual WACC rate for Amazon and where I was wrong in my calculations? Or are you just doing to keep being rude because someone has demonstrated an understanding of something you don't seem to be able to grasp.
I haven't called you a Kopite once, so I'm not sure why you've offered that as a defence? You just come across as a bit rude and ignorant, which can be seen by the fact pretty much everyone on here seems to be critical of you. There is a reason for that.