Faysal Bank Ltd
KAR:FABL
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
F
|
Faysal Bank Ltd
KAR:FABL
|
PK |
|
P
|
PICIC Insurance Ltd
KAR:PIL
|
PK |
|
N
|
Niching Industrial Corp
TPEX:3444
|
TW |
|
P
|
Premia SA
ATHEX:PREMIA
|
GR |
|
Haranga Resources Ltd
F:65E0
|
AU |
|
I
|
Image Pakistan Ltd
KAR:IMAGE
|
PK |
|
G
|
GCS Holdings Inc
TPEX:4991
|
KY |
|
M
|
Master-Pack Group Bhd
KLSE:MASTER
|
MY |
|
P
|
PVA TePla AG
XMUN:TPE
|
DE |
|
W
|
Welcron Co Ltd
KOSDAQ:065950
|
KR |
|
WindowMaster International A/S
F:9FF0
|
DK |
|
D
|
Dgenx Co Ltd
KOSDAQ:113810
|
KR |
|
A
|
Axiomtek Co Ltd
TPEX:3088
|
TW |
|
V
|
Viking Tech Corp
TPEX:3624
|
TW |
|
R
|
Repsol SA
SWB:REP
|
ES |
|
A
|
ASMPT Ltd
OTC:ASMVY
|
SG |
|
A
|
An-Shin Food Services Co Ltd
TPEX:1259
|
TW |
|
R
|
Ray Co Ltd
KOSDAQ:228670
|
KR |
|
C&F Financial Corp
F:CFF
|
US |
|
T
|
Trajan Group Holdings Ltd
ASX:TRJ
|
AU |
|
S
|
Solvay SA
SWB:SOL
|
BE |
|
BitVentures Ltd
NASDAQ:BVC
|
HK |
|
Q
|
Quratis Inc
KOSDAQ:348080
|
KR |
|
S
|
Shine-On BioMedical Co Ltd
TPEX:6926
|
TW |
Discount Rate
FABL Cost of Equity
Discount Rate
FABL's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 15.8%. The Beta, indicating the stock's volatility relative to the market, is 0.68, while the current Risk-Free Rate, based on government bond yields, is 12.8%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is FABL's discount rate?
FABL's current Cost of Equity is 15.8%.
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 FABL 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 FABL