Cab Payments Holdings PLC
F:2SY
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Cab Payments Holdings PLC
F:2SY
|
UK |
|
R
|
Rigel Pharmaceuticals Inc
SWB:RI2A
|
US |
|
I
|
Infosys Ltd
SWB:IOY
|
IN |
|
S
|
SS&C Technologies Holdings Inc
F:WGSA
|
US |
|
Q
|
QinetiQ Group PLC
DUS:QY6
|
UK |
|
B
|
Bank of America Corp
BMV:BAC
|
US |
|
Promotora y Operadora de Infraestructura SAB de CV
BMV:PINFRAL
|
MX |
|
Nolato AB
LSE:0OA9
|
SE |
|
Sopra Steria Group SA
PAR:SOP
|
FR |
|
S
|
SSR Mining Inc
LSE:0VGE
|
CA |
|
T
|
Taiheiyo Cement Corp
XBER:TIE
|
JP |
|
M
|
Metro AG
XBER:B4B3
|
DE |
|
Ctp NV
F:3YZ
|
NL |
|
H
|
H2O Innovation Inc
TSX:HEO
|
CA |
|
A
|
ASGN Inc
F:OA2
|
US |
|
Fairvest Ltd
F:2T20
|
ZA |
|
C
|
Coherent Corp
F:H7B
|
US |
|
Transgene SA
OTC:TRGNF
|
FR |
|
L
|
Lamar Advertising Co
DUS:6LA
|
US |
|
I
|
Indosat Tbk PT
F:IDO1
|
ID |
|
C
|
Coeur Mining Inc
XBER:CDM1
|
US |
|
T
|
Trade Desk Inc
F:TT8
|
US |
|
Fox Corp
NASDAQ:FOXA
|
US |
|
D
|
Discovery Ltd
XMUN:D3H
|
ZA |
Discount Rate
2SY Cost of Equity
Discount Rate
2SY's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.57%. The Beta, indicating the stock's volatility relative to the market, is 0.83, while the current Risk-Free Rate, based on government bond yields, is 5.1%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
2SY WACC
Discount Rate
2SY'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 8.1%. This includes the cost of equity at 8.57%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 5.7%, reflecting the interest rate on 2SY's debt adjusted for tax benefits. The weight of debt in the capital structure is 87.05%.
What is 2SY's discount rate?
2SY's current Cost of Equity is 8.57%, while its WACC stands at 8.1%. 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 2SY 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 2SY
How is WACC for 2SY 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 2SY
