Family Office of America Inc
OTC:FOFA
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Family Office of America Inc
OTC:FOFA
|
US |
|
Telefonaktiebolaget LM Ericsson
XETRA:ERCB
|
SE |
|
G
|
Glencore PLC
SWB:8GC
|
CH |
|
A
|
Apple Inc
LSE:0R2V
|
US |
|
O
|
Origin Energy Ltd
OTC:OGFGY
|
AU |
|
Prim SA
MAD:PRM
|
ES |
|
Publicis Groupe SA
PAR:PUB
|
FR |
|
Staffline Group PLC
LSE:STAF
|
UK |
|
OUTsurance Group Ltd
F:RMQ0
|
ZA |
|
N
|
Nau IB Capital
KOSDAQ:293580
|
KR |
|
C
|
Canamera Energy Metals Corp
CNSX:EMET
|
CA |
|
C
|
Century Global Commodities Corp
OTC:CEUMF
|
HK |
|
L
|
Laurentian Bank of Canada
OTC:LRCDF
|
CA |
|
M
|
Mitsubishi Research Institute Inc
TSE:3636
|
JP |
|
AeroVironment Inc
NASDAQ:AVAV
|
US |
|
R
|
Resmed Inc
XMUN:RME
|
US |
|
Acrow Ltd
ASX:ACF
|
AU |
|
W
|
Woorison F&G Co Ltd
KOSDAQ:073560
|
KR |
|
AutoNation Inc
NYSE:AN
|
US |
|
General Motors Co
NYSE:GM
|
US |
|
G
|
Genesis Scale Holdings Ltd
HKEX:439
|
HK |
|
R
|
Red Metal Resources Ltd
CNSX:RMES
|
CA |
|
Logista Integral SA
MAD:LOG
|
ES |
Discount Rate
FOFA Cost of Equity
Discount Rate
FOFA's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.49%. 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 5.31%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
FOFA WACC
Discount Rate
FOFA's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. The WACC stands at 8.51%. This includes the cost of equity at 8.49%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 11.69%, reflecting the interest rate on FOFA's debt adjusted for tax benefits. The weight of debt in the capital structure is 0.78%.
What is FOFA's discount rate?
FOFA's current Cost of Equity is 8.49%, while its WACC stands at 8.51%. The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate.
How is Cost of Equity for FOFA 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
FOFA
How is WACC for FOFA calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for
FOFA