Vow ASA
F:213
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Vow ASA
F:213
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C
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CTI Biopharma Corp
F:CEPS
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U
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Union Pacific Corp
XMUN:UNP
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US |
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S
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Shin-Etsu Chemical Co Ltd
OTC:SHECF
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JP |
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M
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Monster Beverage Corp
LSE:0K34
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Wesco International Inc
XMUN:WP7
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B
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BHG Group AB
F:7B1
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SE |
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L
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L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA
LSE:0NWF
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Gen Digital Inc
LSE:0AD5
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M
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Metso Outotec Corp
OTC:OUKPF
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JFE Holdings Inc
F:JFR
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Northern Star Resources Ltd
ASX:NST
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Bankinter SA
OTC:BKIMF
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A
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American Aires Inc
F:A5A
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CA |
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S
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Silvercorp Metals Inc
XMUN:S9Y
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CA |
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Perrigo Company PLC
F:PIG
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IE |
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S
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Silvercorp Metals Inc
AMEX:SVM
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T
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Taiheiyo Cement Corp
XBER:TIE
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JP |
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F
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Freeport-McMoRan Inc
SWB:FPMB
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Cab Payments Holdings PLC
F:2SY
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D
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dynaCERT Inc
F:DMJ
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Privia Health Group Inc
NASDAQ:PRVA
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1Spatial PLC
F:G7Z1
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Rockwell Automation Inc
DUS:RWL
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Discount Rate
Cost of Equity
Discount Rate
Vow ASA's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.72%. The Beta, indicating the stock's volatility relative to the market, is 0.77, while the current Risk-Free Rate, based on government bond yields, is 4.5%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
WACC
Discount Rate
Vow ASA'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 10.07%. This includes the cost of equity at 7.72%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 16.63%, reflecting the interest rate on Vow ASA's debt adjusted for tax benefits. The weight of debt in the capital structure is 26.34%.
What is Vow ASA's discount rate?
Vow ASA's current Cost of Equity is 7.72%, while its WACC stands at 10.07%. 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 Vow ASA 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 Vow ASA
How is WACC for Vow ASA 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 Vow ASA
