Grupo Famsa SAB de CV
F:4FP
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Grupo Famsa SAB de CV
F:4FP
|
MX |
|
S
|
Shangri-La Asia Ltd
OTC:SHALY
|
HK |
|
G
|
Globant SA
F:2G2
|
LU |
|
S
|
Sreeleathers Ltd
BSE:535601
|
IN |
|
C
|
CF Industries Holdings Inc
XMUN:C4F
|
US |
|
E
|
Encompass Health Corp
F:HSOA
|
US |
|
C
|
Compass Minerals International Inc
F:CM8
|
US |
|
B
|
BAE Systems PLC
SWB:BSP
|
UK |
|
I
|
Investec Ltd
JSE:INL
|
ZA |
|
J
|
JPMorgan Chase & Co
XMUN:CMC
|
US |
|
C
|
Comba Telecom Systems Holdings Ltd
F:COA1
|
HK |
|
J
|
JMT Network Services PCL
SET:JMT
|
TH |
|
F
|
Fiserv Inc
DUS:FIV
|
US |
|
B
|
Barratt Developments P L C
XBER:3BA
|
UK |
|
T
|
Terex Corp
F:TXG
|
US |
|
C
|
China Water Affairs Group Ltd
XMUN:CUBB
|
HK |
|
C
|
Capricorn Metals Ltd
F:MGM
|
AU |
|
PubMatic Inc
NASDAQ:PUBM
|
US |
|
K
|
Kelly Services Inc
F:KYSA
|
US |
|
A
|
Altria Group Inc
XHAM:PHM7
|
US |
|
COSCO Shipping Holdings Co Ltd
F:C6G0
|
CN |
|
N
|
Northern Star Resources Ltd
SWB:NS7
|
AU |
|
Brunello Cucinelli SpA
F:8BU0
|
IT |
|
D
|
Dai Nippon Printing Co Ltd
DUS:DNP
|
JP |
Discount Rate
4FP Cost of Equity
Discount Rate
4FP's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 12.29%. 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 9.07%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
4FP WACC
Discount Rate
4FP'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 15.26%. This includes the cost of equity at 12.29%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 15.26%, reflecting the interest rate on 4FP's debt adjusted for tax benefits. The weight of debt in the capital structure is 99.86%.
What is 4FP's discount rate?
4FP's current Cost of Equity is 12.29%, while its WACC stands at 15.26%. 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 4FP 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
4FP
How is WACC for 4FP 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
4FP
