Italmobiliare SpA
MIL:ITM
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Italmobiliare SpA
MIL:ITM
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IT |
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Goldman Sachs Group Inc
NYSE:GS
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US |
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M
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Man Wah Holdings Ltd
SWB:AAM
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HK |
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T
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Taisei Corp
XMUN:TKK1
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JP |
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SGS SA
OTC:SGSOF
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CH |
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Y
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Yuhwa Securities Co Ltd
KRX:003465
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KR |
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M&T Bank Corp
NYSE:MTB
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US |
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L
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Land Securities Group PLC
OTC:LSGOF
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UK |
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S
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Sumitomo Mitsui Financial Group, Inc
DUS:XMF
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JP |
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L
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Liontown Ltd
F:LIS
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AU |
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Capgemini SE
PAR:CAP
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FR |
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Geberit AG
SIX:GEBN
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CH |
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CDN Maverick Capital Corp
OTC:AXVEF
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CA |
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Caravel Minerals Ltd
ASX:CVV
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AU |
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C
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Carlos Casado SA
BCBA:CADO
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AR |
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T
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Taiyo Yuden Co Ltd
F:TYC1
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JP |
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Forty Pillars Mining Corp
F:69D
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CA |
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W
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Wells Fargo & Co
DUS:NWT
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US |
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B
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BP Plastics Holding Bhd
KLSE:BPPLAS
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MY |
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P
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PixArt Imaging Inc
TPEX:3227
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TW |
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R
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Rizzoli Corriere della Sera Mediagroup SpA
F:HPI2
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IT |
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B
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Bakrie & Brothers Tbk PT
XMUN:LFU2
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ID |
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Hypothekarbank Lenzburg AG
LSE:0QLK
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CH |
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T
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Tao Heung Holdings Ltd
SWB:BVI
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HK |
Discount Rate
ITM Cost of Equity
Discount Rate
ITM's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.8%. The Beta, indicating the stock's volatility relative to the market, is 0.77, while the current Risk-Free Rate, based on government bond yields, is 4.49%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
ITM WACC
Discount Rate
ITM'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 8.05%. This includes the cost of equity at 7.8%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 9.11%, reflecting the interest rate on ITM's debt adjusted for tax benefits. The weight of debt in the capital structure is 18.92%.
What is ITM's discount rate?
ITM's current Cost of Equity is 7.8%, while its WACC stands at 8.05%. 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 ITM 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
ITM
How is WACC for ITM 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
ITM
