Hexagon Composites ASA
F:2HX
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Hexagon Composites ASA
F:2HX
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NO |
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U
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United Therapeutics Corp
XBER:UTH
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US |
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L
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Ladder Capital Corp
F:LD1A
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US |
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C
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Constellation Brands Inc
BMV:STZ
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US |
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Vestas Wind Systems A/S
CSE:VWS
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DK |
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P
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PNC Financial Services Group Inc
SWB:PNP
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US |
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B
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Bertrandt AG
DUS:BDT
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DE |
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G
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Grenke AG
DUS:GLJ
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DE |
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S
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SBA Communications Corp
F:4SB
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US |
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S
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Synaptics Inc
XBER:SJN
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US |
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Celyad Oncology SA
F:1C0
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BE |
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R
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Redbubble Ltd
OTC:RDBBF
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Alexander & Baldwin Inc (Hawaii)
NYSE:ALEX
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US |
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BT Group PLC
OTC:BTGOF
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UK |
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B
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Booking Holdings Inc
DUS:PCE1
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S
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Secom Co Ltd
SWB:XSC
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JP |
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Piovan SpA
F:PV0
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IT |
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C
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Cineplex Inc
F:CX0
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CA |
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T
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Take-Two Interactive Software Inc
DUS:TKE
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US |
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F
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Fortuna Silver Mines Inc
XMUN:F4S
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CA |
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I
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Imperial Brands PLC
OTC:IMBBF
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UK |
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PYC Therapeutics Ltd
ASX:PYC
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AU |
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B
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Berkshire Hathaway Inc
F:BRH
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H
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Huatai Securities Co Ltd
SWB:206H
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Discount Rate
2HX Cost of Equity
Discount Rate
2HX's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.64%. The Beta, indicating the stock's volatility relative to the market, is 0.99, 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%.
2HX WACC
Discount Rate
2HX'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 11.97%. This includes the cost of equity at 8.64%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 17.27%, reflecting the interest rate on 2HX's debt adjusted for tax benefits. The weight of debt in the capital structure is 38.56%.
What is 2HX's discount rate?
2HX's current Cost of Equity is 8.64%, while its WACC stands at 11.97%. 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 2HX 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
2HX
How is WACC for 2HX 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
2HX
