Community Bank System Inc
NYSE:CBU
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Community Bank System Inc
NYSE:CBU
|
US |
|
Genus PLC
LSE:GNS
|
UK |
|
Infocom Corp
TSE:4348
|
JP |
|
AXP Energy Ltd
ASX:AXP
|
US |
|
Veeko International Holdings Ltd
HKEX:1173
|
HK |
|
A
|
Administradora Americana de Inversiones SA
SGO:AAISA
|
CL |
|
CapitaLand Integrated Commercial Trust
SGX:C38U
|
SG |
|
Country Garden Services Holdings Co Ltd
HKEX:6098
|
CN |
|
Polynovo Ltd
ASX:PNV
|
AU |
|
Whirlpool SA
BOVESPA:WHRL4
|
BR |
|
B
|
Berner Kantonalbank AG
SIX:BEKN
|
CH |
|
R
|
Revenue Group Bhd
KLSE:REVENUE
|
MY |
|
Antarctica Ltd
NSE:ANTGRAPHIC
|
IN |
|
K
|
Korporatsiya VSMPO-AVISMA PAO
MOEX:VSMO
|
RU |
|
H
|
Hugo Boss AG
XBER:BOSS
|
DE |
|
A
|
American Campus Communities Inc
F:FGA
|
US |
|
Krom Bank Indonesia Tbk PT
IDX:BBSI
|
ID |
|
Eve Health Group Ltd
ASX:EVE
|
AU |
|
S
|
Stanley Agricultural Group Co Ltd
SZSE:002588
|
CN |
|
Aksh Optifibre Ltd
NSE:AKSHOPTFBR
|
IN |
|
Idex Biometrics ASA
OSE:IDEX
|
NO |
|
Century Aluminum Co
NASDAQ:CENX
|
US |
|
AS Company SA
LSE:0RIB
|
GR |
|
Rakuten Group Inc
OTC:RKUNF
|
JP |
Discount Rate
CBU Cost of Equity
Discount Rate
CBU's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 7.05%.
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 3.95%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is CBU's discount rate?
CBU
's current Cost of Equity is 7.05%.
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 CBU 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
CBU
