Asuransi Bina Dana Arta Tbk PT
IDX:ABDA
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Asuransi Bina Dana Arta Tbk PT
IDX:ABDA
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ID |
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E
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Elysee Development Corp
SWB:QLDN
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CA |
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Christian Dior SE
OTC:CHDRF
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FR |
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FenixOro Gold Corp
OTC:FDVXF
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CA |
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Erste Group Bank AG
VSE:EBS
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AT |
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Obsidian Energy Ltd
TSX:OBE
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CA |
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3
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3M Co
F:MMM
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US |
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V
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Viant Technology Inc
NASDAQ:DSP
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US |
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Affinor Growers Inc
F:1AF0
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CA |
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Design Therapeutics Inc
NASDAQ:DSGN
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US |
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B
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Bee Vectoring Technologies International Inc
SWB:1UR1
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CA |
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P
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Polski Holding Nieruchomosci SA
SWB:2PN
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PL |
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B
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Betmakers Technology Group Ltd
OTC:TPBTF
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AU |
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Iberdrola SA
F:IBE5
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ES |
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L
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Lindeman Asia Investment Corp
KOSDAQ:277070
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KR |
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F
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Fastly Inc
F:2Y7
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US |
Discount Rate
ABDA Cost of Equity
Discount Rate
ABDA's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 10.23%. The Beta, indicating the stock's volatility relative to the market, is 0.7, while the current Risk-Free Rate, based on government bond yields, is 7.22%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is ABDA's discount rate?
ABDA's current Cost of Equity is 10.23%.
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 ABDA 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
ABDA