MGIC Investment Corp
F:MGC
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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M
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MGIC Investment Corp
F:MGC
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US |
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E
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East Japan Railway Co
OTC:EJPRF
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JP |
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N
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Novo Nordisk A/S
XMUN:NOV
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DK |
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Crown Holdings Inc
NYSE:CCK
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US |
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M
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Mandarin Oriental International Ltd
LSE:MDOB
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HK |
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C
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Conocophillips
F:YCP
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US |
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Rategain Travel Technologies Ltd
BSE:543417
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IN |
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Stem Inc
NYSE:STEM
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US |
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ARMOUR Residential REIT Inc
F:2AR1
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US |
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UBS Group AG
F:0UB
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CH |
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M
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Marathon Petroleum Corp
XMUN:MPN
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US |
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C
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Close Brothers Group PLC
DUS:CS3
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UK |
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P
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Promotora y Operadora de Infraestructura SAB de CV
SWB:AKY
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MX |
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N
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New Oriental Education & Technology Group Inc
F:N1U
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CN |
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Societe Generale SA
MIL:GLE
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FR |
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Xtb SA
F:9PR
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PL |
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DRDGOLD Ltd
OTC:DRDGF
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ZA |
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Barco NV
XBRU:BAR
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BE |
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L
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Lam Research Corp
DUS:LAR
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US |
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Zurich Insurance Group AG
F:ZFI1
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CH |
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Orell Fuessli AG
SIX:OFN
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CH |
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ASM International NV
AEX:ASM
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NL |
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Sonae SGPS SA
F:YSON
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PT |
Discount Rate
MGC Cost of Equity
Discount Rate
MGC's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.89%. The Beta, indicating the stock's volatility relative to the market, is 0.83, while the current Risk-Free Rate, based on government bond yields, is 4.42%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is MGC's discount rate?
MGC's current Cost of Equity is 7.89%.
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 MGC 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
MGC
