Prudential PLC
F:PRU2
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
P
|
Prudential PLC
F:PRU2
|
UK |
|
T
|
Tanco Holdings Bhd
KLSE:TANCO
|
MY |
|
S
|
Samhyun Co Ltd
KOSDAQ:437730
|
KR |
|
G
|
Granite Construction Inc
SWB:GRG
|
US |
|
P
|
Paladin Energy Ltd
XBER:PUR
|
AU |
|
C
|
Centrica PLC
OTC:CPYYF
|
UK |
|
S
|
Stingray Group Inc
OTC:STGYF
|
CA |
|
Retail Estates NV
LSE:0FSO
|
BE |
|
Velocity Financial Inc
NYSE:VEL
|
US |
|
A
|
Anycolor Inc
OTC:ANYCF
|
JP |
|
V
|
Verizon Communications Inc
XHAM:BAC
|
US |
|
F
|
Federal Realty Investment Trust
LSE:0IL1
|
US |
|
H
|
Healthequity Inc
F:2HE
|
US |
|
H
|
Hyundai Mipo Dockyard Co Ltd
KRX:010620
|
KR |
|
Spirax-Sarco Engineering PLC
LSE:SPX
|
UK |
|
W
|
World Flex PCL
SET:WFX
|
TH |
|
Kao Corp
OTC:KAOCF
|
JP |
|
Retail Estates NV
F:R6N
|
BE |
|
P
|
Prudential PLC
OTC:PUKPF
|
UK |
Discount Rate
PRU2 Cost of Equity
Discount Rate
PRU2's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.58%. 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 4.44%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is PRU2's discount rate?
PRU2's current Cost of Equity is 7.58%.
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 PRU2 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
PRU2
