MainStreet Bancshares Inc
NASDAQ:MNSB
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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MainStreet Bancshares Inc
NASDAQ:MNSB
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US |
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D
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Daewoong Co Ltd
KRX:003090
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KR |
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Nocil Ltd
NSE:NOCIL
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IN |
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RaffAello-Astrum Financial Holdings Ltd
HKEX:8333
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HK |
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N
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Northern Textiles And Garments JSC
VN:TET
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VN |
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G
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Golden MV Holdings Inc
XPHS:HVN
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PH |
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Paccar Inc
NASDAQ:PCAR
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US |
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Jai Balaji Industries Ltd
NSE:JAIBALAJI
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IN |
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New Zealand King Salmon Co Ltd
NZX:NZK
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NZ |
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E
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Engenco Ltd
XBER:CDF
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AU |
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M
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Makara Mining Corp
CNSX:MAKA
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CA |
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S
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Sanok Rubber Company SA
WSE:SNK
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PL |
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HK Asia Holdings Ltd
HKEX:1723
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HK |
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Vossloh AG
XETRA:VOS
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DE |
Discount Rate
MNSB Cost of Equity
Discount Rate
MNSB'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 MNSB's discount rate?
MNSB
'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 MNSB 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
MNSB
