Hanover Insurance Group Inc
F:AF4
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
H
|
Hanover Insurance Group Inc
F:AF4
|
US |
|
E
|
Expeditors International of Washington Inc
F:EW1
|
US |
|
O
|
Omni-Lite Industries Canada Inc
OTC:OLNCF
|
US |
|
S
|
Snam SpA
F:SNM
|
IT |
|
U
|
Union Pacific Corp
XHAN:UNP
|
US |
|
Taseko Mines Ltd
TSX:TKO
|
CA |
|
Air China Ltd
OTC:AIRYY
|
CN |
|
Gail (India) Ltd
OTC:GAILF
|
IN |
|
V
|
Vibe Growth Corp
OTC:VIBEF
|
CA |
|
Finet Group Ltd
HKEX:8317
|
HK |
|
R
|
Renault SA
OTC:RNSDF
|
FR |
|
Suzano SA
BOVESPA:SUZB3
|
BR |
|
P
|
P2Earn Inc
CNSX:PXE
|
CA |
|
U
|
Under Armour Inc
F:U9R
|
US |
|
C
|
Cadence Design Systems Inc
DUS:CDS
|
US |
|
Iron Force Industrial Co Ltd
TWSE:2228
|
TW |
|
LIFULL Co Ltd
TSE:2120
|
JP |
|
E
|
Elan Corp
TSE:6099
|
JP |
|
S
|
Seven & i Holdings Co Ltd
DUS:S6M
|
JP |
|
T
|
Toptec Co Ltd
KOSDAQ:108230
|
KR |
|
Schneider Electric SE
PAR:SU
|
FR |
|
P
|
Principal Financial Group Inc
SWB:PG4
|
US |
|
Abb Ltd
F:ABJA
|
CH |
|
Mercadolibre Inc
NASDAQ:MELI
|
AR |
Discount Rate
AF4 Cost of Equity
Discount Rate
AF4's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.23%. The Beta, indicating the stock's volatility relative to the market, is 0.7, while the current Risk-Free Rate, based on government bond yields, is 5.22%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is AF4's discount rate?
AF4's current Cost of Equity is 8.23%.
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 AF4 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
AF4