FNB Corp
NYSE:FNB
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
FNB Corp
NYSE:FNB
|
US |
|
Cloudflare Inc
NYSE:NET
|
US |
|
BLB Ltd
NSE:BLBLIMITED
|
IN |
|
P
|
Prosiebensat 1 Media SE
XETRA:PSM
|
DE |
|
Tilray Brands Inc
XETRA:2HQ0
|
CA |
|
Franklin Wireless Corp
NASDAQ:FKWL
|
US |
|
International Seaways Inc
NYSE:INSW
|
US |
|
hVIVO PLC
LSE:HVO
|
UK |
|
U
|
Unusual Machines Inc
AMEX:UMAC
|
US |
|
Lynas Rare Earths Ltd
XMUN:LYI
|
AU |
|
Changzhou Zhongying Science & Technology Co Ltd
SZSE:300936
|
CN |
|
China Reform Culture Holdings Co Ltd
SSE:600636
|
CN |
|
P
|
Polygiene Group AB
STO:POLYG
|
SE |
|
World Precision Machinery Ltd
SGX:B49
|
CN |
|
A
|
Akkhie Prakarn Public Company Limited
SET:AKP
|
TH |
Discount Rate
FNB Cost of Equity
Discount Rate
FNB'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 FNB's discount rate?
FNB
'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 FNB 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
FNB
