Topdanmark A/S
CSE:TOP
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Topdanmark A/S
CSE:TOP
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S
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Salutica Bhd
KLSE:SALUTE
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MY |
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M
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Max Sight Group Holdings Ltd
HKEX:8483
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HK |
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Gihon Telekomunikasi Indonesia Tbk PT
IDX:GHON
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ID |
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Bank Sinarmas Tbk PT
IDX:BSIM
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ID |
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Airsculpt Technologies Inc
NASDAQ:AIRS
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US |
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Nexpe Participacoes SA
BOVESPA:NEXP3
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BR |
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BEST Inc
NYSE:BEST
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CN |
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Lucara Diamond Corp
TSX:LUC
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CA |
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Tempus Resources Ltd
ASX:TMR
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AU |
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Lamprell Plc
LSE:LAM
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AE |
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H
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Hoa Binh Construction Group JSC
VN:HBC
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VN |
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B&G Foods Inc
NYSE:BGS
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US |
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Nuvei Corp
TSX:NVEI
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CA |
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C
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Cerner Corp
LSE:0R00
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US |
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TVS Holdings Ltd
NSE:TVSHLTD
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IN |
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S
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SCI Information Service Inc
KOSDAQ:036120
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KR |
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Kardex Holding AG
OTC:KRDXF
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CH |
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Forsys Metals Corp
TSX:FSY
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CA |
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N
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Namchow Holdings Co Ltd
TWSE:1702
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TW |
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Invesco Mortgage Capital Inc
NYSE:IVR
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US |
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D
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Dida Inc
HKEX:2559
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CN |
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Micreed Co Ltd
TSE:7687
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P
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POWR Lithium Corp
CNSX:POWR
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CA |
Discount Rate
TOP Cost of Equity
Discount Rate
TOP's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 5.76%.
The Beta, indicating the stock's volatility relative to the market, is 0.76, while the current Risk-Free Rate, based on government bond yields, is 2.58%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is TOP's discount rate?
TOP
's current Cost of Equity is 5.76%.
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 TOP 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
TOP
