Stockland Corporation Ltd
ASX:SGP
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Stockland Corporation Ltd
ASX:SGP
|
AU |
|
R
|
Rexon Industrial Corp Ltd
TWSE:1515
|
TW |
|
Eden Research PLC
LSE:EDEN
|
UK |
|
Rite Aid Corp
OTC:RADCQ
|
US |
|
Rambler Metals and Mining PLC
LSE:RMM
|
UK |
|
S
|
Svenska Nyttobostader AB (publ)
STO:NYTTO
|
SE |
|
eBook Initiative Japan Co Ltd
TSE:3658
|
JP |
|
Doosan Bobcat Inc
KRX:241560
|
KR |
|
Tourism Holdings Ltd
NZX:THL
|
NZ |
|
M
|
Miwon Chemicals Co Ltd
KRX:134380
|
KR |
|
G
|
GoLogiq Inc
OTC:GOLQ
|
US |
|
Semen Indonesia (Persero) Tbk PT
IDX:SMGR
|
ID |
|
H
|
Hong Ho Precision Textile Co Ltd
TWSE:1446
|
TW |
|
B
|
Beijing Jingpin Tezhuang Science and Technology Co Ltd
SSE:688084
|
CN |
|
E
|
Etga Group Ltd
TASE:ETGA
|
IL |
|
New World Department Store China Ltd
HKEX:825
|
HK |
|
AKITA Drilling Ltd
TSX:AKT.A
|
CA |
|
Taro Pharmaceutical Industries Ltd
F:TAL
|
IL |
Discount Rate
SGP Cost of Equity
Discount Rate
SGP's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 8.05%.
The Beta, indicating the stock's volatility relative to the market, is 0.81, while the current Risk-Free Rate, based on government bond yields, is 4.66%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
SGP WACC
Discount Rate
SGP's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax.
The WACC stands at 8.05%. This includes the cost of equity at 8.05%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 8.04%, reflecting the interest rate on
SGP's debt adjusted for tax benefits. The weight of debt in the capital structure is 25.87%.
What is SGP's discount rate?
SGP
's current Cost of Equity is 8.05%, while its WACC stands at 8.05%.
The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate."
How is Cost of Equity for SGP calculated?
The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).
This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.
Here is how we calculate the cost of equity for
SGP
How is WACC for SGP calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for
SGP
