Dnb ASA
OTC:DNBBF
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Dnb ASA
OTC:DNBBF
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Taiheiyo Cement Corp
XMUN:TIE
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C
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Comtech Telecommunications Corp
XMUN:CC6
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Share India Securities Ltd
BSE:540725
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Royal Dutch Shell PLC
OTC:RYDAF
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International Container Terminal Services Inc
OTC:ICTEY
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Atrys Health SA
MAD:ATRY
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F
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Federated Hermes Inc
DUS:3KC
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GrowGeneration Corp
NASDAQ:GRWG
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Bath & Body Works Inc
NYSE:BBWI
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Petroleo Brasileiro SA Petrobras
XHAM:PJXC
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Rai Way SpA
F:4RW
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First Republic Bank
OTC:FRCB
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Vishay Intertechnology Inc
DUS:VHY
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AXA SA
F:AXA
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Raytheon Technologies Corp
F:5UR
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Cognizant Technology Solutions Corp
NASDAQ:CTSH
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Star Diamond Corp
SWB:GOC
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Lithia Motors Inc
SWB:LMO
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Huntington Bancshares Inc
NASDAQ:HBAN
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BlackBerry Ltd
XBER:RI1
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Credicorp Ltd
XBER:D8V
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Fortune Minerals Ltd
TSX:FT
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Moneysupermarket.Com Group PLC
XBER:39M
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Discount Rate
DNBBF Cost of Equity
Discount Rate
DNBBF's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.21%. The Beta, indicating the stock's volatility relative to the market, is 0.7, while the current Risk-Free Rate, based on government bond yields, is 4.21%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is DNBBF's discount rate?
DNBBF's current Cost of Equity is 7.21%.
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 DNBBF 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
DNBBF
