Terreno Realty Corp
F:T37
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Terreno Realty Corp
F:T37
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Dimand Societe Anonyme for The Use and Construction of Real Estate Constructions Services and Participations
F:MW8
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D
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Draganfly Inc
CNSX:DPRO
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Megawatt Lithium and Battery Metals Corp
CNSX:MEGA
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Vallourec SA
PAR:VK
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Texas Roadhouse Inc
F:ROW
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Mds Retailing Tbk
IDX:LPPF
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High Quality Food SpA
F:L24
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Douglas Dynamics Inc
NYSE:PLOW
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Yoma Strategic Holdings Ltd
SGX:Z59
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Medibank Private Ltd
F:MPV
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TransDigm Group Inc
NYSE:TDG
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Kron Telekomunikasyon Hizmetleri AS
IST:KRONT.E
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Giocamondo Study SpA
MIL:GMS
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IT |
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Sungchang Enterprise Holdings Ltd
KRX:000180
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Sompo Holdings Inc
TSE:8630
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Stewart Information Services Corp
F:SIU
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Goldhaven Resources Corp
OTC:GHVNF
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7
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786 Investments Ltd
KAR:786
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VSE Corp
NASDAQ:VSEC
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TSX:TF
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Scancell Holdings PLC
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Discount Rate
T37 Cost of Equity
Discount Rate
T37's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.25%. The Beta, indicating the stock's volatility relative to the market, is 0.77, while the current Risk-Free Rate, based on government bond yields, is 4.93%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
T37 WACC
Discount Rate
T37'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 7.94%. This includes the cost of equity at 8.25%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 5.6%, reflecting the interest rate on T37's debt adjusted for tax benefits. The weight of debt in the capital structure is 11.75%.
What is T37's discount rate?
T37's current Cost of Equity is 8.25%, while its WACC stands at 7.94%. 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 T37 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
T37
How is WACC for T37 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
T37