Petrofac Ltd
DUS:P2F
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P
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Petrofac Ltd
DUS:P2F
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JE |
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OC Oerlikon Corporation AG Pfaeffikon
OTC:OERLF
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CH |
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Link Mobility Group Holding ASA
F:L1N
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NO |
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I
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International Flavors & Fragrances Inc
DUS:IFF
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US |
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D
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Deutsche Lufthansa AG
SWB:LHAB
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DE |
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Castile Resources Ltd
ASX:CST
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AU |
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Reckitt Benckiser Group PLC
LSE:RKT
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UK |
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Pittler Maschinenfabrik AG
F:PIT
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DE |
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C
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CDL Hospitality Trusts
SGX:J85
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L
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LVMH Moet Hennessy Louis Vuitton SE
F:MOHF
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FR |
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AUO Corp
TWSE:2409
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TW |
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Matador Resources Co
NYSE:MTDR
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US |
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Straumann Holding AG
F:QS50
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CH |
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N
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New York Times Co
SWB:NYT
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US |
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M
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Metropole Television SA
XMUN:MMT
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FR |
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Fresenius Medical Care AG & Co KGaA
MIL:FME
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DE |
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L
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Lloyds Banking Group PLC
XBER:LLD
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UK |
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Oxford Nanopore Technologies PLC
OTC:OXFYY
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UK |
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AO World PLC
F:81A
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UK |
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Nu Holdings Ltd
NYSE:NU
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BR |
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M
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Metropole Television SA
F:MMT
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P
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PJ Metal Co Ltd
KOSDAQ:128660
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KR |
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I
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ING Groep NV
SWB:INNA
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NL |
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Schoeller Bleckmann Oilfield Equipment AG
F:SLL
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AT |
Discount Rate
P2F Cost of Equity
Discount Rate
P2F's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.18%. The Beta, indicating the stock's volatility relative to the market, is 0.91, while the current Risk-Free Rate, based on government bond yields, is 4.38%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
P2F WACC
Discount Rate
P2F'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 9.97%. This includes the cost of equity at 8.18%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 10.81%, reflecting the interest rate on P2F's debt adjusted for tax benefits. The weight of debt in the capital structure is 68.2%.
What is P2F's discount rate?
P2F's current Cost of Equity is 8.18%, while its WACC stands at 9.97%. 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 P2F 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
P2F
How is WACC for P2F 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
P2F
