Danske Bank A/S
F:DSN
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Danske Bank A/S
F:DSN
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DK |
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S
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SSP Group PLC
F:83S2
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UK |
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C
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Contact Energy Ltd
F:BZB
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NZ |
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S
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Sweden BuyersClub AB
F:KT7
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SE |
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Z
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ZIM Integrated Shipping Services Ltd
F:2SV
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IL |
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O
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Obrascon Huarte Lain SA
XMUN:HUA
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ES |
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B
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Bed Bath & Beyond Inc
F:BBY
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US |
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Trinseo PLC
F:3XD
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US |
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S
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Sonic Healthcare Ltd
F:SAB
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AU |
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VinFast Auto Ltd
F:0TL
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SG |
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T
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Technogym SpA
F:TN2
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IT |
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Schloss Wachenheim AG
XETRA:SWA
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DE |
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S
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Shree Global Tradefin Ltd
BSE:512463
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IN |
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C
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Commerzbank AG
SWB:CBK
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DE |
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B
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Baytex Energy Corp
F:B5X
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CA |
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I
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Incyte Corp
DUS:ICY
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US |
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Samsung Electronics Co Ltd
LSE:SMSD
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KR |
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S
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Sun Hung Kai Properties Ltd
SWB:SHG
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HK |
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O
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Oracle Corp
DUS:ORC
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US |
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Legend Power Systems Inc
F:XLE1
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CA |
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F
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FibroGen Inc
BMV:FGEN
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US |
Discount Rate
DSN Cost of Equity
Discount Rate
DSN's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 5.71%. The Beta, indicating the stock's volatility relative to the market, is 0.75, while the current Risk-Free Rate, based on government bond yields, is 2.58%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is DSN's discount rate?
DSN's current Cost of Equity is 5.71%.
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 DSN 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
DSN
