BankFinancial Corp
NASDAQ:BFIN
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
BankFinancial Corp
NASDAQ:BFIN
|
US |
|
Koei Tecmo Holdings Co Ltd
TSE:3635
|
JP |
|
Shurgard Self Storage Ltd
XBRU:SHUR
|
GG |
|
InvesTech Holdings Ltd
HKEX:1087
|
CN |
|
E
|
Echo Marketing Co Ltd
KOSDAQ:230360
|
KR |
|
R
|
Runjian Co Ltd
SZSE:002929
|
CN |
|
A
|
Anglo American PLC
OTC:AAUKF
|
UK |
|
A
|
ACI Worldwide Inc
XBER:TSA
|
US |
|
M
|
Maruti Infrastructure Ltd
BSE:531540
|
IN |
|
Petro Rio SA
BOVESPA:PRIO3
|
BR |
|
S
|
SalfaCorp SA
SGO:SALFACORP
|
CL |
|
MNC Land Tbk PT
IDX:KPIG
|
ID |
|
RemeGen Co Ltd
SSE:688331
|
CN |
|
E
|
EIT Environmental Development Group Co Ltd
SZSE:300815
|
CN |
|
Maral Overseas Ltd
NSE:MARALOVER
|
IN |
|
R
|
Restile Ceramics Ltd
BSE:515085
|
IN |
|
D
|
DI Dong Il Corp
KRX:001530
|
KR |
|
Popular Inc
NASDAQ:BPOP
|
PR |
|
C
|
China Water Industry Group Ltd
HKEX:1129
|
HK |
|
S
|
Stagwell Inc
NASDAQ:STGW
|
US |
|
Performance Shipping Inc
NASDAQ:PSHG
|
GR |
Discount Rate
BFIN Cost of Equity
Discount Rate
BFIN's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 7.47%.
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 4.34%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is BFIN's discount rate?
BFIN
's current Cost of Equity is 7.47%.
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 BFIN 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
BFIN
