Eurocell PLC
LSE:ECEL
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Eurocell PLC
LSE:ECEL
|
UK |
|
B
|
Brand Concepts Ltd
NSE:BCONCEPTS
|
IN |
|
P
|
Power Master Energy Co Ltd
TPEX:6839
|
TW |
|
Aspen Pharmacare Holdings Ltd
F:LDZA
|
ZA |
|
Penumbra Inc
NYSE:PEN
|
US |
|
Humpuss Intermoda Transportasi Tbk PT
IDX:HITS
|
ID |
|
PriceSmart Inc
NASDAQ:PSMT
|
US |
|
M
|
Manila Mining Corp
XPHS:MAB
|
PH |
|
S
|
Sunny Pharmtech Inc
TPEX:6676
|
TW |
|
Signaux Girod SA
LSE:0NAS
|
FR |
|
B
|
Bank of New York Mellon Corp
F:BN9
|
US |
|
Visi Media Asia Tbk PT
IDX:VIVA
|
ID |
|
P
|
PMPG Polskie Media SA
WSE:PGM
|
PL |
|
Sinopharm Group Co Ltd
F:X2S1
|
CN |
|
B
|
Bank of Montreal
NYSE:BMO
|
CA |
|
W
|
Webac Holding AG
F:RKB
|
DE |
|
P
|
PhilWeb Corp
XPHS:WEB
|
PH |
|
Danske Andelskassers Bank A/S
CSE:DAB
|
DK |
|
S
|
Societe Generale SA
XHAN:SGE
|
FR |
|
Caisse regionale de Credit Agricole Mutuel Alpes Provence
PAR:CRAP
|
FR |
|
D
|
Digital Realty Trust Inc
F:FQI
|
US |
|
A
|
Aspen Pharmacare Holdings Ltd
JSE:APN
|
ZA |
|
P
|
Petro Vietnam Technical Services Corp
VN:PVS
|
VN |
|
Arm Holdings PLC
NASDAQ:ARM
|
UK |
Discount Rate
ECEL Cost of Equity
Discount Rate
ECEL's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 9.04%. The Beta, indicating the stock's volatility relative to the market, is 0.83, while the current Risk-Free Rate, based on government bond yields, is 5.47%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
ECEL WACC
Discount Rate
ECEL'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 8.47%. This includes the cost of equity at 9.04%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 7.44%, reflecting the interest rate on ECEL's debt adjusted for tax benefits. The weight of debt in the capital structure is 38.51%.
What is ECEL's discount rate?
ECEL's current Cost of Equity is 9.04%, while its WACC stands at 8.47%. 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 ECEL 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
ECEL
How is WACC for ECEL 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
ECEL