Banco Comercial Portugues SA
ELI:BCP
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Banco Comercial Portugues SA
ELI:BCP
|
PT |
|
Peet Ltd
ASX:PPC
|
AU |
|
V
|
Vienna Insurance Group AG Wiener Versicherung Gruppe
F:WSV2
|
AT |
|
W
|
Walmart Inc
SGO:WMT
|
US |
|
C
|
Compagnie de Saint Gobain SA
PAR:SGONV
|
FR |
|
F
|
First Watch Restaurant Group Inc
NASDAQ:FWRG
|
US |
|
Atco Ltd
TSX:ACO.Y
|
CA |
|
UniCredit SpA
MIL:UCG
|
IT |
|
Usinas Siderurgicas de Minas Gerais SA USIMINAS
BOVESPA:USIM3
|
BR |
|
Bakrie & Brothers Tbk PT
IDX:BNBR
|
ID |
|
Steel Strips Wheels Ltd
NSE:SSWL
|
IN |
|
Costco Wholesale Corp
NASDAQ:COST
|
US |
|
N
|
Netlist Inc
OTC:NLST
|
US |
|
Altair Engineering Inc
NASDAQ:ALTR
|
US |
|
Property Franchise Group PLC
LSE:TPFG
|
UK |
|
National Beverage Corp
NASDAQ:FIZZ
|
US |
|
S
|
Smith Douglas Homes Corp
NYSE:SDHC
|
US |
|
BNP Paribas SA
PAR:BNP
|
FR |
Discount Rate
BCP Cost of Equity
Discount Rate
BCP's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.1%. The Beta, indicating the stock's volatility relative to the market, is 0.75, while the current Risk-Free Rate, based on government bond yields, is 2.96%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is BCP's discount rate?
BCP's current Cost of Equity is 6.1%.
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 BCP 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
BCP
