Cornish Metals PLC
F:5S5
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
C
|
Cornish Metals PLC
F:5S5
|
UK |
|
L
|
LG Electronics Inc
KRX:066575
|
KR |
|
A
|
African Rainbow Minerals Ltd
XBER:EB9
|
ZA |
|
P
|
Publicis Groupe SA
SWB:PU4
|
FR |
|
Innovatec SpA
F:5JT
|
IT |
|
S
|
Seelos Therapeutics Inc
F:NXEN
|
US |
|
A
|
Astra International Tbk PT
SWB:ASJA
|
ID |
|
H
|
Healius Ltd
ASX:HLSNB
|
AU |
|
W
|
Western Union Co
LSE:0LVJ
|
US |
|
Gen Digital Inc
LSE:0AD5
|
US |
|
N
|
Netscout Systems Inc
F:NSZ
|
US |
|
S
|
Steakholder Foods Ltd
NASDAQ:STKH
|
IL |
|
Recruit Holdings Co Ltd
TSE:6098
|
JP |
|
BAE Systems PLC
OTC:BAESF
|
UK |
Discount Rate
5S5 Cost of Equity
Discount Rate
5S5's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 9.31%. The Beta, indicating the stock's volatility relative to the market, is 1.07, while the current Risk-Free Rate, based on government bond yields, is 4.84%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is 5S5's discount rate?
5S5's current Cost of Equity is 9.31%.
In the valuation of banks and insurance companies, only the cost of equity is used due to their unique capital structures and regulatory environments.
These institutions heavily rely on debt, regulated more stringently than other industries, making the Weighted Average Cost of Capital (WACC) less applicable and accurate for them. The cost of equity offers a more direct measure of the risk and return expectations relevant to these specific sectors.
How is Cost of Equity for 5S5 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 5S5
