Commercial National Financial Corp (Michigan)
OTC:CEFC
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
C
|
Commercial National Financial Corp (Michigan)
OTC:CEFC
|
US |
|
A
|
Acomo NV
SWB:8AC
|
NL |
|
Experian PLC
LSE:EXPN
|
IE |
|
Sampo Oyj
F:SMP2
|
FI |
|
A
|
Amines and Plasticizers Ltd
NSE:AMNPLST
|
IN |
|
A
|
Aegean Airlines SA
ATHEX:AEGN
|
GR |
|
C
|
Celestica Inc
SWB:CTW0
|
CA |
|
KEFI Gold and Copper Plc
F:KMSA
|
CY |
|
Brown-Forman Corp
LSE:0HQ3
|
US |
|
Zhejiang Meorient Commerce & Exhibition Inc
SZSE:300795
|
CN |
|
A
|
Autonomix Medical Inc
NASDAQ:AMIX
|
US |
|
T
|
Tokyo Electron Ltd
DUS:TKY
|
JP |
|
Darma Henwa Tbk PT
IDX:DEWA
|
ID |
|
N
|
Nestle SA
BMV:NESNN
|
CH |
|
Oracle Power PLC
F:9OC
|
UK |
|
D
|
Dae Dong Steel Co Ltd
KOSDAQ:048470
|
KR |
|
Computime Group Ltd
HKEX:320
|
HK |
|
S
|
Standard Capital Markets Ltd
BSE:511700
|
IN |
|
G
|
Gold Pacific Co Ltd
KOSDAQ:038530
|
KR |
|
K
|
Kinhbac City Development Holding Corp
VN:KBC
|
VN |
|
Worthington Steel Inc
F:Z2J
|
US |
|
Vaudoise Assurances Holding SA
OTC:VDASF
|
CH |
|
M
|
MayAir Technology China Co Ltd
SSE:688376
|
CN |
|
Sumitomo Mitsui Financial Group, Inc
TSE:8316
|
JP |
Discount Rate
CEFC Cost of Equity
Discount Rate
CEFC's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.31%. The Beta, indicating the stock's volatility relative to the market, is 0.68, while the current Risk-Free Rate, based on government bond yields, is 5.31%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is CEFC's discount rate?
CEFC's current Cost of Equity is 8.31%.
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 CEFC 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 CEFC