Mitre Realty Empreendimentos e Participacoes SA
BOVESPA:MTRE3
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Mitre Realty Empreendimentos e Participacoes SA
BOVESPA:MTRE3
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BR |
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Surya Citra Media Tbk PT
IDX:SCMA
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ID |
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Hitachi Energy India Ltd
NSE:POWERINDIA
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IN |
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HealthBank Holdings Ltd
SGX:40B
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SG |
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H
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HNK Machine Tool Co Ltd
KOSDAQ:101680
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KR |
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Forestar Group Inc
NYSE:FOR
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US |
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Gravita India Ltd
NSE:GRAVITA
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IN |
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Mitra Investindo Tbk PT
IDX:MITI
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ID |
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A
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Ameresco Inc
F:4AM
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US |
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F
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FrontView REIT Inc
NYSE:FVR
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E
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Evotec SE
XETRA:EVT
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DE |
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C
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Citycon Oyj
OMXH:CTY1S
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FI |
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Brunello Cucinelli SpA
OTC:BCUCF
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IT |
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W
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Westag AG
F:WUG
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DE |
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Shanghai Join Buy Co Ltd
SSE:600838
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CN |
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E
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Eurotel SA
WSE:ETL
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PL |
Discount Rate
MTRE3 Cost of Equity
Discount Rate
MTRE3's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 17.57%.
The Beta, indicating the stock's volatility relative to the market, is 0.9, while the current Risk-Free Rate, based on government bond yields, is 13.81%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
MTRE3 WACC
Discount Rate
MTRE3'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 18.76%. This includes the cost of equity at 17.57%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 19.79%, reflecting the interest rate on
MTRE3's debt adjusted for tax benefits. The weight of debt in the capital structure is 53.45%.
What is MTRE3's discount rate?
MTRE3
's current Cost of Equity is 17.57%, while its WACC stands at 18.76%.
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 MTRE3 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
MTRE3
How is WACC for MTRE3 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
MTRE3
