Nishat Power Ltd
KAR:NPL
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
N
|
Nishat Power Ltd
KAR:NPL
|
PK |
|
Brookfield Corp
LSE:0KEH
|
CA |
|
Salesforce Inc
NYSE:CRM
|
US |
|
Industria de Diseno Textil SA
MAD:ITX
|
ES |
|
ANZ Group Holdings Ltd
OTC:ANZGF
|
AU |
|
M
|
Medistim ASA
SWB:MD1
|
NO |
|
MTU Aero Engines AG
F:MTX1
|
DE |
|
Alarm.com Holdings Inc
LSE:0HC2
|
US |
|
C
|
Cognex Corp
XMUN:CGZ
|
US |
|
Deutsche Bank AG
XETRA:DBK
|
DE |
|
Accrete Inc
TSE:4395
|
JP |
|
C.Uyemura & Co Ltd
TSE:4966
|
JP |
|
L&T Finance Ltd
NSE:LTF
|
IN |
|
T
|
TomCo Energy PLC
OTC:TMCGF
|
UK |
|
F
|
Fisher & Paykel Healthcare Corporation Ltd
ASX:FPH
|
NZ |
|
HIAG Immobilien Holding AG
SIX:HIAG
|
CH |
|
A
|
Aeroports de Paris SA
XMUN:W7L
|
FR |
|
OneSpan Inc
NASDAQ:OSPN
|
US |
|
R
|
Raymond James Financial Inc
F:RJF
|
US |
|
Indofood CBP Sukses Makmur Tbk PT
OTC:PNDFF
|
ID |
|
Axon Enterprise Inc
NASDAQ:AXON
|
US |
|
F
|
Fletcher Building Ltd
OTC:FRCEF
|
AU |
|
C
|
Cognex Corp
LSE:0I14
|
US |
|
China Construction Bank Corp
OTC:CICHF
|
CN |
Discount Rate
NPL Cost of Equity
Discount Rate
NPL's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 16.02%. The Beta, indicating the stock's volatility relative to the market, is 0.75, while the current Risk-Free Rate, based on government bond yields, is 12.79%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
NPL WACC
Discount Rate
NPL'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 15.79%. This includes the cost of equity at 16.02%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 12.99%, reflecting the interest rate on NPL's debt adjusted for tax benefits. The weight of debt in the capital structure is 20.92%.
What is NPL's discount rate?
NPL's current Cost of Equity is 16.02%, while its WACC stands at 15.79%. 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 NPL 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 NPL
How is WACC for NPL 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 NPL