AL Sydbank A/S
DUS:TM2
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A
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AL Sydbank A/S
DUS:TM2
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DK |
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S
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Sinotruk Hong Kong Ltd
OTC:SHKLY
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CN |
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B
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Bualuang Office Leasehold Real Estate Investment Trust
SET:B-WORK
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TH |
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A
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Aeon Thana Sinsap Thailand PCL
SET:AEONTS
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TH |
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Vera Therapeutics, Inc
NASDAQ:VERA
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US |
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Sanderson Design Group PLC
LSE:SDG
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UK |
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T
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Top End Energy Ltd
ASX:TEE
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AU |
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JR Holding Alternatywna Spolka Inwestycyjna SA
F:8JA
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PL |
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D
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Dadelo SA
WSE:DAD
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PL |
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Daiwa Securities Group Inc
TSE:8601
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JP |
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C
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Centuria Industrial Reit
ASX:CIP
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AU |
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A
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AnnJi Pharmaceutical Co Ltd
TPEX:7754
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TW |
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U
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UBIS Asia PCL
SET:UBIS
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TH |
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N
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NCR Voyix Corp
XMUN:NCR1
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US |
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G
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Gesco SE
XMUN:GSC1
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DE |
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D
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DCI Database for Commerce and Industry AG
F:DCIK
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DE |
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E
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Ecora Royalties PLC
F:HGR
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UK |
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Portmeirion Group PLC
OTC:POTMF
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UK |
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L
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Laboratorios Richmond SACIF
BCBA:RICH
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AR |
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U
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Unique Fire Holdings Bhd
KLSE:UNIQUE
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MY |
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N
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NovaGold Resources Inc
XMUN:NGR
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US |
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S
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Super Energy Power Plant Infrastructure Fund
SET:SUPEREIF
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TH |
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S
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SportsHero Ltd
OTC:NIROF
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AU |
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Lipetskaya Energosbytovaya Kompaniya PAO
MOEX:LPSB
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RU |
Discount Rate
TM2 Cost of Equity
Discount Rate
TM2's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.4%. The Beta, indicating the stock's volatility relative to the market, is 0.68, while the current Risk-Free Rate, based on government bond yields, is 3.4%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is TM2's discount rate?
TM2's current Cost of Equity is 6.4%.
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 TM2 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
TM2