Frontier Services Group Ltd
HKEX:500
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Frontier Services Group Ltd
HKEX:500
|
HK |
|
Mobly SA
BOVESPA:MBLY3
|
BR |
|
Artemis Electricals and Projects Ltd
BSE:542670
|
IN |
|
S
|
Spetz Inc
CNSX:SPTZ
|
CA |
|
Sands China Ltd
HKEX:1928
|
MO |
|
S
|
Shandong Sinoglory Health Food Co Ltd
SSE:603182
|
CN |
|
Biglari Holdings Inc
NYSE:BH.A
|
US |
|
National Bankshares Inc
NASDAQ:NKSH
|
US |
|
A
|
Assam Entrade Ltd
BSE:542911
|
IN |
|
A
|
Attica Holdings SA
ATHEX:ATTICA
|
GR |
|
Guangdong PAK Corporation Co Ltd
SZSE:300625
|
CN |
|
S
|
Samyoung M Tek Co Ltd
KOSDAQ:054540
|
KR |
|
Graham Holdings Co
NYSE:GHC
|
US |
|
Federal International (2000) Ltd
SGX:BDU
|
SG |
|
3Peak Inc
SSE:688536
|
CN |
|
Ellington Financial Inc
NYSE:EFC
|
US |
|
J
|
Jiangsu Lanfeng Bio-chemical Co Ltd
SZSE:002513
|
CN |
|
F
|
Fujian Green Pine Co Ltd
SZSE:300132
|
CN |
|
I
|
IDream Film Infrastructure Company Ltd
BSE:504375
|
IN |
|
XPLR Infrastructure LP
NYSE:XIFR
|
US |
|
C
|
Cords Cable Industries Ltd
NSE:CORDSCABLE
|
IN |
|
T
|
Tek Seng Holdings Bhd
KLSE:TEKSENG
|
MY |
|
GOME Retail Holdings Ltd
HKEX:493
|
CN |
|
Svenska Cellulosa SCA AB
STO:SCA B
|
SE |
Discount Rate
Cost of Equity
Discount Rate
Frontier Services Group Ltd's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 7.2%.
The Beta, indicating the stock's volatility relative to the market, is 0.84, while the current Risk-Free Rate, based on government bond yields, is 3.69%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
WACC
Discount Rate
Frontier Services Group Ltd'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 6.68%. This includes the cost of equity at 7.2%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 4.72%, reflecting the interest rate on
Frontier Services Group Ltd's debt adjusted for tax benefits. The weight of debt in the capital structure is 48.35%.
What is Frontier Services Group Ltd's discount rate?
Frontier Services Group Ltd
's current Cost of Equity is 7.2%, while its WACC stands at 6.68%.
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 Frontier Services Group Ltd 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
Frontier Services Group Ltd
How is WACC for Frontier Services Group Ltd 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
Frontier Services Group Ltd
