Eastern Power Group PCL
SET:EP
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
E
|
Eastern Power Group PCL
SET:EP
|
TH |
|
L
|
L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA
XMUN:AIL
|
FR |
|
I
|
International Paper Co
BMV:IP
|
US |
|
S
|
Samart Corporation PCL
SET:SAMART
|
TH |
|
N
|
Nebius Group NV
XMUN:YDX
|
NL |
|
SK IE Technology Co Ltd
KRX:361610
|
KR |
|
M
|
Monkey Rock Group Inc
OTC:MKRO
|
US |
|
Heads UP Ventures Limited
NSE:HEADSUP
|
IN |
|
V
|
Vas Infrastructure Ltd (cn)
BSE:531574
|
IN |
|
S
|
Sociedad Comercial del Plata SA
SIX:CADN
|
AR |
|
Fleetpartners Group Ltd
ASX:FPR
|
AU |
|
Loop Industries Inc
NASDAQ:LOOP
|
CA |
|
Penta-Ocean Construction Co Ltd
TSE:1893
|
JP |
|
B
|
BioPlus Co Ltd
KOSDAQ:099430
|
KR |
|
C
|
Chaosua Foods Industry PCL
SET:CHAO
|
TH |
|
M
|
MK Real Estate Development PCL
SET:MK
|
TH |
|
A
|
American Critical Minerals Corp
CNSX:KCLI
|
CA |
|
Bionano Genomics Inc
NASDAQ:BNGO
|
US |
|
Lleidanetworks Serveis Telematics SA
MAD:LLN
|
ES |
Discount Rate
EP Cost of Equity
Discount Rate
EP's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 5.26%. 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 2.08%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
EP WACC
Discount Rate
EP'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 13.59%. This includes the cost of equity at 5.26%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 17.77%, reflecting the interest rate on EP's debt adjusted for tax benefits. The weight of debt in the capital structure is 66.61%.
What is EP's discount rate?
EP's current Cost of Equity is 5.26%, while its WACC stands at 13.59%. 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 EP 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 EP
How is WACC for EP 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 EP
