Richter Gedeon Vegyeszeti Gyar Nyrt
SWB:RIG2
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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R
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Richter Gedeon Vegyeszeti Gyar Nyrt
SWB:RIG2
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HU |
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I
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Infinity Development Holdings Company Ltd
HKEX:640
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MO |
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Gold Fields Ltd
LSE:0IYR
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ZA |
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H
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Hapag Lloyd AG
SWB:HLAG
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DE |
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J
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Julius Baer Gruppe AG
F:JGE
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CH |
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D2L Inc
F:NE5
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CA |
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Pegasystems Inc
NASDAQ:PEGA
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US |
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V
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VAT Group AG
OTC:VACNY
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CH |
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Aselsan Elektronik Sanayi ve Ticaret AS
IST:ASELS.E
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TR |
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H
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HA Sustainable Infrastructure Capital Inc
LSE:0J2Z
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US |
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K
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Kukil Metal Co Ltd
KOSDAQ:060480
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KR |
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Syrah Resources Ltd
ASX:SYR
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AU |
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Bridgemarq Real Estate Services Inc
TSX:BRE
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CA |
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U
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Universal Health Services Inc
F:UHS
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US |
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S
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Swedish Orphan Biovitrum AB (publ)
SWB:B6E
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SE |
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C
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Captor Therapeutics SA
WSE:CTX
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PL |
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I
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Intesa Sanpaolo SpA
OTC:ISNPY
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IT |
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Asian Television Network International Ltd
XTSX:SAT
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CA |
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L
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Linde PLC
XETRA:LIN
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UK |
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Barry Callebaut AG
SIX:BARN
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CH |
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W
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Wilcon Depot Inc
XPHS:WLCON
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PH |
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N
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Nishat Power Ltd
KAR:NPL
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PK |
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A
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Almirall SA
SWB:E2Z
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ES |
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W
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Wells Fargo & Co
BMV:WFC
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US |
Discount Rate
RIG2 Cost of Equity
Discount Rate
RIG2's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 9.5%. The Beta, indicating the stock's volatility relative to the market, is 0.9, while the current Risk-Free Rate, based on government bond yields, is 5.63%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
RIG2 WACC
Discount Rate
RIG2'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 10.28%. This includes the cost of equity at 9.5%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 33.82%, reflecting the interest rate on RIG2's debt adjusted for tax benefits. The weight of debt in the capital structure is 3.2%.
What is RIG2's discount rate?
RIG2's current Cost of Equity is 9.5%, while its WACC stands at 10.28%. 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 RIG2 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 RIG2
How is WACC for RIG2 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 RIG2