Morgan Stanley Capital Trust III (Morgan Stanley Capital Trust III) WACC % :10.3% (As of Jun. 05, 2024)

Morgan Stanley Capital Trust III WACC % Chart

Competitive Comparison of Morgan Stanley Capital Trust III's WACC %

For the Banks - Regional subindustry, Morgan Stanley Capital Trust III's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Morgan Stanley Capital Trust III's WACC % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Morgan Stanley Capital Trust III's WACC % distribution charts can be found below:

* The bar in red indicates where Morgan Stanley Capital Trust III's WACC % falls into.

Morgan Stanley Capital Trust III WACC % Calculation

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.

Morgan Stanley Capital Trust III  (NYSE:MWRCL.PFD) WACC % Explanation

Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Morgan Stanley Capital Trust III's weighted average cost of capital is 10.3%%. Morgan Stanley Capital Trust III's ROIC % is 0.00% (calculated using TTM income statement data). Morgan Stanley Capital Trust III earns returns that do not match up to its cost of capital. It will destroy value as it grows.

*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.

2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.

3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.

4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.

Morgan Stanley Capital Trust III (Morgan Stanley Capital Trust III) Business Description