Sompo Holdings Inc
F:ANK
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
S
|
Sompo Holdings Inc
F:ANK
|
JP |
|
BNP Paribas SA
F:BNPH
|
FR |
|
C
|
Citizens Financial Group Inc
F:1C5
|
US |
|
C
|
Corcept Therapeutics Inc
XMUN:HTD
|
US |
|
Fairvest Ltd
F:2T20
|
ZA |
|
E
|
Eversource Energy
F:NWJ
|
US |
|
I
|
Indo Boga Sukses Tbk PT
IDX:IBOS
|
ID |
|
B
|
Box Inc
F:3BX
|
US |
|
S
|
Singapore Telecommunications Ltd
DUS:SIT4
|
SG |
|
C
|
Capri Holdings Ltd
F:MKO
|
UK |
|
H
|
Hewlett Packard Enterprise Co
XETRA:2HP
|
US |
|
E
|
Equifax Inc
DUS:EFX
|
US |
|
Aeeris Ltd
ASX:AER
|
AU |
|
Hiwin Mikrosystem Corp
TWSE:4576
|
TW |
|
U
|
United Utilities Group PLC
DUS:UUEC
|
UK |
|
A
|
Alpha Technology Group Ltd
NASDAQ:ATGL
|
HK |
|
C
|
Cisco Systems Inc
XHAM:CIS
|
US |
|
N
|
Nikon Corp
SWB:NKN
|
JP |
Discount Rate
ANK Cost of Equity
Discount Rate
ANK's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 5.95%. 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 2.94%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is ANK's discount rate?
ANK's current Cost of Equity is 5.95%.
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 ANK 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
ANK