National Bank of Greece SA
ATHEX:ETE
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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National Bank of Greece SA
ATHEX:ETE
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GR |
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M
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Moshi Moshi Retail Corporation PCL
SET:MOSHI
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TH |
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N
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North Asia Strategic Holdings Ltd
HKEX:8080
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HK |
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R
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Revoil Petroleum Company SA
ATHEX:REVOIL
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T
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Trillion Energy International Inc
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CA |
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S
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Shanghai Tianyong Engineering Co Ltd
SSE:603895
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CN |
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G
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Global-Dining Inc
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Matas A/S
CSE:MATAS
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DK |
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Reliance Global Group Inc
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US |
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S
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SMART Global Holdings Inc.
SWB:850
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KY |
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Tillys Inc
NYSE:TLYS
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US |
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CyberBuzz Inc
TSE:7069
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JP |
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Teka Tecelagem Kuehnrich SA
BOVESPA:TEKA4
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BR |
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Kadant Inc
NYSE:KAI
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US |
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Keystone Law Group PLC
LSE:KEYS
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UK |
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Self Storage Management S de RL de CV
BMV:STORAGE18
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MX |
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C
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CTS Co Ltd
TSE:4345
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JP |
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Sichuan Meifeng Chemical Industry Co Ltd
SZSE:000731
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CN |
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Casa Holdings Ltd
SGX:C04
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SG |
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S
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SCG Ceramics PCL
SET:COTTO
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TH |
Discount Rate
ETE Cost of Equity
Discount Rate
ETE's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 6.4%.
The Beta, indicating the stock's volatility relative to the market, is 0.74, while the current Risk-Free Rate, based on government bond yields, is 3.3%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is ETE's discount rate?
ETE
's current Cost of Equity is 6.4%.
In the valuation of banks and insurance companies, only the cost of equity is used due to their unique capital structures and regulatory environments.
These institutions heavily rely on debt, regulated more stringently than other industries, making the Weighted Average Cost of Capital (WACC) less applicable and accurate for them. The cost of equity offers a more direct measure of the risk and return expectations relevant to these specific sectors.
How is Cost of Equity for ETE 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
ETE
