What is WACC? How do value a company? Suggest a method that can help you decide on project undertaking?

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WACC is the weighted average cost of capital. To value a company, one can use various methods such as DCF, comparables, or precedent transactions. A method to decide on project undertaking is NPV analysis.

WACC is the average cost of all the capital a company has raised
To value a company, one can use DCF, comparables, or precedent transactions
DCF involves projecting future cash flows and discounting them back to present value
Comparables involves comparing the company to similar companies in the same industry
Precedent transactions involves looking at the prices paid for similar companies in the past
NPV analysis involves calculating the present value of future cash flows and comparing it to the initial investment
If NPV is positive, the project is worth undertaking
If NPV is negative, the project should be rejected
If NPV is zero, the project is neutral

What is WACC? How do value a company? Suggest a method that can help you decide on project undertaking?

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