Enghouse Systems Ltd
F:3E4
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Enghouse Systems Ltd
F:3E4
|
CA |
|
Gold Resource Corp
XTSX:GORO
|
US |
|
G
|
Grupo Financiero Multiva SAB de CV
BMV:GFMULTIO
|
MX |
|
B
|
Big Shopping Centers Ltd
TASE:BIG
|
IL |
|
G
|
Genomtec SA
WSE:GMT
|
PL |
|
E
|
Emerge Commerce Ltd
OTC:EMCMF
|
CA |
|
KH Neochem Co Ltd
TSE:4189
|
JP |
|
J
|
JBDI Holdings Ltd
NASDAQ:JBDI
|
SG |
|
W
|
Western Energy Services Corp
OTC:WEEEF
|
CA |
|
I
|
ICON PLC
F:IJF
|
IE |
|
AcroMeta Group Ltd
SGX:43F
|
SG |
|
S
|
Sojitz Corp
F:XEB
|
JP |
|
Industrivarden AB
F:IDVA
|
SE |
|
Logista Integral SA
MAD:LOG
|
ES |
|
O
|
Otobrite Electronics Inc
TPEX:2256
|
TW |
|
G
|
Gold Hydrogen Ltd
OTC:GHYLF
|
AU |
|
Lec Inc
TSE:7874
|
JP |
|
Seres Therapeutics Inc
F:1S90
|
US |
|
I
|
Iron Device Corp
KOSDAQ:464500
|
KR |
|
Senshu Electric Co Ltd
TSE:9824
|
JP |
|
Mohit Industries Ltd
BSE:531453
|
IN |
|
S
|
Sao Ta Foods JSC
VN:FMC
|
VN |
|
Theravance Biopharma Inc
NASDAQ:TBPH
|
KY |
|
A
|
Akastor ASA
SWB:KY7
|
NO |
Discount Rate
Cost of Equity
Discount Rate
Enghouse Systems Ltd's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.04%. The Beta, indicating the stock's volatility relative to the market, is 0.94, while the current Risk-Free Rate, based on government bond yields, is 4%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
WACC
Discount Rate
Enghouse Systems Ltd'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 8.04%. This includes the cost of equity at 8.04%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 8.44%, reflecting the interest rate on Enghouse Systems Ltd's debt adjusted for tax benefits. The weight of debt in the capital structure is 0.45%.
What is Enghouse Systems Ltd's discount rate?
Enghouse Systems Ltd's current Cost of Equity is 8.04%, while its WACC stands at 8.04%. 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 Enghouse Systems Ltd 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
Enghouse Systems Ltd
How is WACC for Enghouse Systems Ltd 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
Enghouse Systems Ltd