SMC Corp
F:QMC0
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
SMC Corp
F:QMC0
|
JP |
|
A
|
ABC Arbitrage SA
SWB:9BA
|
FR |
|
Sandvik AB
OTC:SDVKF
|
SE |
|
C
|
Coeur Mining Inc
SWB:CDM1
|
US |
|
V
|
Verizon Communications Inc
XHAN:BAC
|
US |
|
S
|
Societe Anonyme des Bains de Mer et du Cercle des Etrangers a Monaco SA
XMUN:RJ8
|
MC |
|
Henkel AG & Co KGaA
F:HEN
|
DE |
|
Celebrus Technologies PLC
OTC:DFORF
|
UK |
|
J
|
Jabil Inc
XMUN:JBL
|
US |
|
Roper Technologies Inc
SIX:ROP
|
US |
|
DRDGOLD Ltd
F:DUBA
|
ZA |
|
E
|
EnerSys
F:FDN
|
US |
|
C
|
Check Point Software Technologies Ltd
XMUN:CPW
|
IL |
|
W
|
West Wits Mining Ltd
OTC:WMWWF
|
AU |
|
A
|
AXT Inc
XMUN:AHV
|
US |
|
Aedifica NV
OTC:AEDFF
|
BE |
|
G
|
General Mills Inc
F:GRM
|
US |
|
Rexford Industrial Realty Inc
F:3I0
|
US |
|
Compagnie De l'odet SE
F:49F
|
FR |
|
Central Depository Services (India) Ltd
NSE:CDSL
|
IN |
|
FAR Ltd
ASX:FAR
|
AU |
|
C
|
Campbell's Co
XMUN:CSC
|
US |
|
C
|
Commonwealth Bank of Australia
F:CWW
|
AU |
|
Adastria Co Ltd
F:1E0
|
JP |
Discount Rate
QMC0 Cost of Equity
Discount Rate
QMC0's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.36%. The Beta, indicating the stock's volatility relative to the market, is 1, while the current Risk-Free Rate, based on government bond yields, is 3.06%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
QMC0 WACC
Discount Rate
QMC0's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. The WACC stands at 7.36%. This includes the cost of equity at 7.36%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 3.29%, reflecting the interest rate on QMC0's debt adjusted for tax benefits. The weight of debt in the capital structure is 0%.
What is QMC0's discount rate?
QMC0's current Cost of Equity is 7.36%, while its WACC stands at 7.36%. The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate.
How is Cost of Equity for QMC0 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
QMC0
How is WACC for QMC0 calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for
QMC0