Caisse regionale de Credit Agricole Mutuel de Paris et d Ile de France
PAR:CAF
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Caisse regionale de Credit Agricole Mutuel de Paris et d Ile de France
PAR:CAF
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FR |
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Shedir Pharma Srl Unipersonale
MIL:SHE
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IT |
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C
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CDG Petchem Ltd
BSE:534796
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IN |
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D
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Dental Corporation PCL
SET:D
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TH |
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Y
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Yes 24 Co Ltd
KOSDAQ:053280
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KR |
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P
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PCCS Group Bhd
KLSE:PCCS
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MY |
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Hiwin Technologies Corp
TWSE:2049
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TW |
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P
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PT Era Digital Media Tbk
IDX:AWAN
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ID |
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Aspen Pharmacare Holdings Ltd
OTC:APNHY
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ZA |
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Amlogic Shanghai Co Ltd
SSE:688099
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CN |
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K
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Khang Dien House Trading and Investment JSC
VN:KDH
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VN |
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TL Natural Gas Holdings Ltd
HKEX:8536
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CN |
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Coca-Cola Bottlers Japan Holdings Inc
TSE:2579
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JP |
Discount Rate
CAF Cost of Equity
Discount Rate
CAF's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 6.32%.
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 3.23%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is CAF's discount rate?
CAF
's current Cost of Equity is 6.32%.
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 CAF 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
CAF
