Iyo Bank Ltd
TSE:8385
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Iyo Bank Ltd
TSE:8385
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JP |
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H
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Hasti Finance Ltd
BSE:531387
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IN |
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B
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Budweiser Brewing Company APAC Ltd
OTC:BDWBF
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HK |
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Southern Alliance Mining Ltd.
SGX:QNS
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MY |
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B
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Bayridge Resources Corp
OTC:BYRRF
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CA |
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C
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China Vered Financial Holding Corporation Ltd
HKEX:245
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HK |
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C
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China Steel Corp
TWSE:2002
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TW |
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M
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Miwon Specialty Chemical Co Ltd
KRX:268280
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KR |
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CD Projekt SA
OTC:OTGLF
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PL |
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Guangdong TianYiMa Information Industry Co Ltd
SZSE:301178
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CN |
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Hipolin Ltd
BSE:530853
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IN |
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Technogym SpA
MIL:TGYM
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IT |
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Ikwezi Mining Ltd
ASX:IKW
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BM |
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L
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L'Oreal SA
F:LOR
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FR |
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BayWa AG
XETRA:BYW6
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DE |
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Piramal Pharma Ltd
NSE:PPLPHARMA
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IN |
Discount Rate
Cost of Equity
Discount Rate
Iyo Bank Ltd's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 5.4%. 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 2.3%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is Iyo Bank Ltd's discount rate?
Iyo Bank Ltd 's current Cost of Equity is 5.4%.
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 Iyo Bank 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 Iyo Bank Ltd
