First Merchants Corp
NASDAQ:FRME
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
First Merchants Corp
NASDAQ:FRME
|
US |
|
Longitech Smart Energy Holding Ltd
HKEX:1281
|
CN |
|
X
|
Xiamen Wanli Stone Stock Co Ltd
SZSE:002785
|
CN |
|
P
|
Per Aarsleff Holding A/S
CSE:PAAL B
|
DK |
|
Sambhaav Media Ltd
NSE:SAMBHAAV
|
IN |
|
I
|
Impact Coatings AB (publ)
F:1IC
|
SE |
|
T
|
Tulikivi Oyj
OMXH:TULAV
|
FI |
|
L
|
Lizen JSC
VN:LCG
|
VN |
|
Suwen Electric Energy Technology Co Ltd
SZSE:300982
|
CN |
|
Kion Group AG
XETRA:KGX
|
DE |
|
Mycronic AB (publ)
STO:MYCR
|
SE |
|
G
|
Great Southern Copper PLC
LSE:GSCU
|
UK |
|
Marvelous Inc
TSE:7844
|
JP |
|
D
|
Daesung Hi Tech Co Ltd
KOSDAQ:129920
|
KR |
|
Heubach Colorants India Ltd
NSE:HEUBACHIND
|
IN |
|
B
|
Bajaj Electricals Ltd
NSE:BAJAJELEC
|
IN |
|
A
|
Allergy Therapeutics PLC
OTC:AGYTF
|
UK |
|
G
|
GoldMoney Inc
OTC:XAUMF
|
CA |
|
A
|
Apple Inc
LSE:0R2V
|
US |
|
USS Co Ltd
TSE:4732
|
JP |
|
H
|
Hoftex Group AG
XMUN:NBH
|
DE |
|
Booktopia Group Ltd
ASX:BKG
|
AU |
|
A
|
Aqua SA Bielsko-Biala
WSE:AQU
|
PL |
|
N
|
Nanso Transport Co Ltd
TSE:9034
|
JP |
Discount Rate
FRME Cost of Equity
Discount Rate
FRME'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 FRME's discount rate?
FRME
'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 FRME 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
FRME
