Banco di Desio e della Brianza SpA
MIL:BDB
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Banco di Desio e della Brianza SpA
MIL:BDB
|
IT |
|
Companhia Paranaense de Energia
NYSE:ELP
|
BR |
|
J
|
Jiahe Foods Industry Co Ltd
SSE:605300
|
CN |
|
K
|
Kingsemi Co Ltd
SSE:688037
|
CN |
|
C
|
Cloudwalk Technology Co Ltd
SSE:688327
|
CN |
|
Healthway Medical Corporation Ltd
SGX:5NG
|
SG |
|
Ugro Capital Ltd
NSE:UGROCAP
|
IN |
|
Ricegrowers Ltd
ASX:SGLLV
|
AU |
|
C
|
Case Group AB
STO:CASE
|
SE |
Discount Rate
BDB Cost of Equity
Discount Rate
BDB's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 6.37%.
The Beta, indicating the stock's volatility relative to the market, is 0.74, while the current Risk-Free Rate, based on government bond yields, is 3.28%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is BDB's discount rate?
BDB
's current Cost of Equity is 6.37%.
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 BDB 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
BDB
