Banco Bilbao Vizcaya Argentaria SA
DUS:BOY
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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B
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Banco Bilbao Vizcaya Argentaria SA
DUS:BOY
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ES |
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S
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Sicily By Car SpA
F:5LC
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IT |
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C
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Cintas Corp
XMUN:CIT
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US |
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H
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Hologic Inc
SWB:HO1
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US |
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S
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Shanghai Pharmaceuticals Holding Co Ltd
HKEX:2607
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CN |
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Holcim AG
F:HLBN
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CH |
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Lintec Corp
F:57T
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JP |
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F
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Franklin Resources Inc
XMUN:FRK
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US |
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Meier Tobler Group AG
SIX:MTG
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CH |
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Roper Technologies Inc
SIX:ROP
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US |
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A
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Anglo Asian Mining PLC
F:A4A
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AZ |
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N
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National Bank of Canada
F:NBC
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CA |
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Getlink SE
PAR:GET
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FR |
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A
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Admiral Group PLC
F:FLN
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UK |
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C
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Capcom Co Ltd
SWB:CPK
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JP |
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K
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Keurig Dr Pepper Inc
DUS:DP5
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US |
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F
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First Advantage Corp
XBER:0MS
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US |
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E
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EDP Renovaveis SA
XBER:EDW
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ES |
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C
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Coca-Cola Europacific Partners PLC
F:CK0
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UK |
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Humana Inc
NYSE:HUM
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US |
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Banco de Sabadell SA
F:BDSB
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ES |
Discount Rate
BOY Cost of Equity
Discount Rate
BOY's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.6%. The Beta, indicating the stock's volatility relative to the market, is 0.69, while the current Risk-Free Rate, based on government bond yields, is 3.6%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is BOY's discount rate?
BOY's current Cost of Equity is 6.6%.
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 BOY 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
BOY
