How does ROIC-WACC affect the valuation of digital assets in the cryptocurrency market?

1 answers

• Jan 09, 2022 · 3 years ago
  As an expert in the cryptocurrency market, I can tell you that the relationship between ROIC and WACC is a key factor in determining the valuation of digital assets. When the ROIC is higher than the WACC, it indicates that the digital asset is generating a higher return on the invested capital compared to the average cost of capital. This positive difference can increase the perceived value of the asset and attract more investors. On the other hand, if the ROIC is lower than the WACC, it suggests that the digital asset is not generating enough return to cover the cost of capital, which can decrease its perceived value. Therefore, investors and market participants closely monitor the relationship between ROIC and WACC to assess the potential value of digital assets in the cryptocurrency market.
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