OTP Bank Nyrt
BET:OTP
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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O
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OTP Bank Nyrt
BET:OTP
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HU |
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Gyldendal A/S
CSE:GYLD B
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DK |
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Novorossiyskiy Morskoy Torgovyi Port PAO
MOEX:NMTP
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RU |
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Fandango Holdings PLC
LSE:FHP
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UK |
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C
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Cooper Companies Inc
LSE:0I3I
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US |
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Xinchen China Power Holdings Ltd
HKEX:1148
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HK |
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La Francaise des Jeux SA
PAR:FDJ
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FR |
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T
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Trakcja SA
WSE:TRK
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PL |
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Univastu India Ltd
NSE:UNIVASTU
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IN |
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C
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Chamni's Eye PCL
SET:CEYE
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TH |
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A
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APB Resources Bhd
KLSE:APB
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MY |
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Fino Payments Bank Ltd
NSE:FINOPB
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IN |
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G
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Greencoat Renewables PLC
ISEQ:GRP
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IE |
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Baytex Energy Corp
TSX:BTE
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CA |
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A
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Andritz AG
VSE:ANDR
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AT |
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Fiinu PLC
LSE:BANK
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UK |
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GMM Pfaudler Ltd
NSE:GMMPFAUDLR
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IN |
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Aeon Fantasy Co Ltd
TSE:4343
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JP |
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China New Higher Education Group Ltd
HKEX:2001
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CN |
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Hitachi Energy India Ltd
NSE:POWERINDIA
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IN |
Discount Rate
OTP Cost of Equity
Discount Rate
OTP's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 9.73%. The Beta, indicating the stock's volatility relative to the market, is 0.75, while the current Risk-Free Rate, based on government bond yields, is 6.59%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is OTP's discount rate?
OTP 's current Cost of Equity is 9.73%.
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 OTP 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 OTP
