Showa Holdings Co Ltd
TSE:5103
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
S
|
Showa Holdings Co Ltd
TSE:5103
|
JP |
|
Mega Nirman & Industries Ltd
BSE:539767
|
IN |
|
V
|
Vrain Solution Inc
TSE:135A
|
JP |
|
Universal Inc
TWSE:1325
|
TW |
|
China Communications Construction Co Ltd
HKEX:1800
|
CN |
|
D
|
Delfingen Industry SA
XBER:HBS
|
FR |
|
IHH Healthcare Bhd
OTC:IHHHF
|
MY |
|
I
|
Intracom Holdings SA
ATHEX:INTRK
|
GR |
|
Z
|
Zhongnanhong Culture Group Co Ltd
SZSE:002445
|
CN |
|
MercadoLibre Inc
BMV:MELIN
|
UY |
|
iClick Interactive Asia Group Ltd
NASDAQ:ICLK
|
HK |
|
Histogen Inc
OTC:HSTOQ
|
US |
|
T
|
Talant Optronics suzhou Co Ltd
SZSE:301045
|
CN |
|
Impress Holdings Inc
TSE:9479
|
JP |
|
D
|
Dien Quang Lamp JSC
VN:DQC
|
VN |
|
P
|
Petsec Energy Ltd
ASX:PSA
|
AU |
|
NeXGold Mining Corp
XTSX:NEXG
|
CA |
|
R
|
Revenio Group Oyj
OMXH:REG1V
|
FI |
|
CITech Co Ltd
KRX:004920
|
KR |
|
Manolete Partners PLC
LSE:MANO
|
UK |
|
Medesis Pharma SA
PAR:ALMDP
|
FR |
|
JUNEYAO AIRLINES Co Ltd
SSE:603885
|
CN |
|
R
|
Royal Century Resources Holdings Ltd
HKEX:8125
|
HK |
|
P
|
PCS Technology Ltd
BSE:517119
|
IN |
Discount Rate
Cost of Equity
Discount Rate
Showa Holdings Co Ltd's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 5.83%. The Beta, indicating the stock's volatility relative to the market, is 0.83, while the current Risk-Free Rate, based on government bond yields, is 2.36%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
WACC
Discount Rate
Showa Holdings Co Ltd'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 5.74%. This includes the cost of equity at 5.83%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 5.25%, reflecting the interest rate on Showa Holdings Co Ltd's debt adjusted for tax benefits. The weight of debt in the capital structure is 14.94%.
What is Showa Holdings Co Ltd's discount rate?
Showa Holdings Co Ltd 's current Cost of Equity is 5.83%, while its WACC stands at 5.74%. 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 Showa Holdings Co Ltd 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 Showa Holdings Co Ltd
How is WACC for Showa Holdings Co Ltd 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 Showa Holdings Co Ltd
