Puma SE
OTC:PUMSY
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Puma SE
OTC:PUMSY
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Hcd Investment Producing and Trading JSC
VN:HCD
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Tonghua Dongbao Pharmaceutical Co Ltd
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StealthGas Inc
NASDAQ:GASS
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Compagnie Generale des Etablissements Michelin SCA
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Hanza AB
STO:HANZA
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National Plastic Industries Ltd
BSE:526616
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Canandaigua National Corp
OTC:CNND
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Vgi Partners Ltd
ASX:VGI
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PT Dayamitra Telekomunikasi Tbk
IDX:MTEL
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Dadelo SA
WSE:DAD
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5G Networks Ltd
ASX:5GN
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Embraer SA
BOVESPA:EMBR3
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Canadian Tire Corporation Ltd
TSX:CTC
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Innovators Facade Systems Ltd
BSE:541353
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Alten SA
XBER:AN3
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ENKA Insaat ve Sanayi AS
IST:ENKAI.E
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Sree Rayalaseema Hi-Strength Hypo Ltd
NSE:SRHHYPOLTD
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Tat Seng Packaging Group Ltd
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Profarma Distribuidora de Produtos Farmaceuticos SA
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Scout Security Ltd
ASX:SCT
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Revitalist Lifestyle and Wellness Ltd
OTC:RVLWF
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ITAB Shop Concept AB
STO:ITAB
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E Automotive Inc
TSX:EINC
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Discount Rate
PUMSY Cost of Equity
Discount Rate
PUMSY's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 6.23%.
The Beta, indicating the stock's volatility relative to the market, is 0.76, while the current Risk-Free Rate, based on government bond yields, is 3.05%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
PUMSY WACC
Discount Rate
PUMSY'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 7.49%. This includes the cost of equity at 6.23%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 10.3%, reflecting the interest rate on
PUMSY's debt adjusted for tax benefits. The weight of debt in the capital structure is 30.99%.
What is PUMSY's discount rate?
PUMSY
's current Cost of Equity is 6.23%, while its WACC stands at 7.49%.
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 PUMSY 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
PUMSY
How is WACC for PUMSY 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
PUMSY