Locating WACC

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Some of the information in this post may be out of date. Please speak to a librarian for more up to date information. 

The weighted average cost of capital, or WACC, is defined by Investopedia as…”a calculation of a firm’s cost of capital in which each category of capital is proportionately weighted”.  Capital meaning a firm’s total stocks, bonds, and long-term debt.  The Investopia entry also contains the formula for figuring a firm’s WACC.  (Bloomberg also provides WACC for individual firms).

An industry WACC is often sought in the process of valuation of a company, and the common source for locating industry WACC is the Cost of Capital Yearbook by Ibbotson (Bryant, on order).   This unique source provides the cost of equity and the weighted average cost of capital for industries arranged by SIC industry code.   If you don’t have access to this Ibbotson source, try looking at Damodaran Online , a site developed by Professor Aswath Damodaran, Professor of Finance and David Margolis Teaching Fellow at the Stern School of Business at New York University.  Professor Damodaran has developed a Cost of Capital by Sector page (dated Jan. 2009) using Value Line data.  After viewing Professor Damodaran’s page you might want to take a look at some of his many books, such as Applied Corporate Finance, Damodaran on Valuation, Investment Valuation, or his new book, Strategic Risk Taking: a Framework for Risk Management  (on order).

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Library Closed 12/24-12/27

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The library will close at 4pm December 23rd and will reopen at 8:30am on December 28th. Feel free to email or leave a voice mail at the library and we will get back to you after the 28th.

Access Services
401-232-6125
circdesk@bryant.edu

Reference Services
401-232-6299
refdesk@bryant.edu

Investment Analyst Reports

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Some of the information in this post may be out of date. Please speak to a librarian for more up to date information. 

Need an analyst report on a stock you are researching, but not sure how to get it?  The Douglas & Judith Krupp library carries reports from 4 leading business publishers that can be accessed through the Articles & Databases link on the library website.  All of these reports  include a written assessment of the stock, key financial data and ratios, a beta and volatility measurement, and a buy/sell/hold recommendation, as well as unique value-added information. Check the date of the report to ensure timeliness.  These are subscription services, so off-campus access will require typing in your name and 14-digit barcode # (located above the bars on your Bryant ID) to identify you as affiliated with Bryant. The 4 leading sources for investment reports include:

  • Standard & Poor’s NetAdvantage
    To access the Standard & Poor’s Stock Report on a specific company, select Companies from the tab at the top of the page.  On the displayed page, select Stock Reports from the drop down box located under Resources.  Most reports include a one page Sub-Industry Outlook at end.
  • Morningstar Investment Research Center
    Under the Stocks image, click on the entry for Stock Analyst Reports. Select your stock(s) from an alphabetical listing an then click on the underlined company name to view the full report.  Each report includes a Bulls Say and Bears Say section highlighting important considerations to be aware of before deciding on a move.
  • Value Line Research Center
    Click on the Look Up Company link on the left banner and search for your company of interest by ticker or name.  If the Value Line analysts have covered your stock, you will be provided with access to a pdf and html copy of their one page report.  Value Line provides an estimate of 5 years out for critical ratios such as annual and relative P/E and average annual dividend yield.
  • Mergent Online
    Search the database by company name or ticker and then click on the retrieved entry.  To access the Mergent Equity Reports, click on the TearSheets tab on the top menu and select Equity Reports.  Mergent analysts provide an in-depth graphical representation of the price performance, earnings momentum, and price momentum.

These subscription reports have a consistent reputation for quality in performance.  Free reports that vary in the amount of data and information they provide can also be found at the following:

Social Media and Strategic Advantage

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Some of the information in this post may be out of date. Please speak to a librarian for more up to date information. 

Social media sites have become a major pipeline for communicating with family, friends, and co-workers.  Businesses are attempting to figure out how to use sites such as Facebook and Twitter to their strategic advantage to recruit employees, develop customer relationships, and market products.  The following new Krupp library books can  help explain how to use social networking tools to accomplish business goals:

Scott Monty, Head of Social Media at Ford Motor Company and owner of the Social Marketing Blog (http://www.scottmonty.com), in a recent Wall Street Journal article, recommends the following blogs to track social media trends and to learn how to use social networking tools for business strategic advantage:

Social media sites provide small businesses owners with an inexpensive avenue for getting their brand exposed to an endless number of potential customers.  Used wisely, these sites offer great strategic advantage to companies; used unwisely, they can waste time that might be used more productively elsewhere.

Library Hours for Final Exam Period (12/11 – 12/21)

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Final Exams are almost here.  You may panic now.  As always, we’ll be open additional hours, and here’s the schedule:

Friday, 12/11 – 7:30 am to 10 pm

Saturday, 12/12 – 8 am to 6 pm

Sunday, 12/13 – 10 am to 2 am

Monday through Thursday, 12/14 – 12/17 – 7 am to 2 am

Friday, 12/18 – 7 am to 10 pn

Saturday, 12/19 – 8 am to 6 pm

Sunday, 12/20 – 10 am to 2 am

Monday, 12/21 – 7 am to 10 pm