Canadian Imperial Bank of Commerce
TSX:CM
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Canadian Imperial Bank of Commerce
TSX:CM
|
CA |
|
C
|
Champion Iron Ltd
ASX:CIA
|
AU |
|
A
|
Adventa Bhd
KLSE:ADVENTA
|
MY |
|
Sixt SE
F:SIX3
|
DE |
|
LATAM Airlines Group SA
SGO:LTM
|
CL |
|
A
|
Allianz SE
XHAN:ALV
|
DE |
|
Synectics PLC
LSE:SNX
|
UK |
|
C
|
Cigna Corp
XETRA:CGN
|
US |
|
M
|
MGM Resorts International
XMUN:MGG
|
US |
|
D
|
DENTSPLY SIRONA Inc
XMUN:DY2
|
US |
|
Renaissancere Holdings Ltd
NYSE:RNR
|
BM |
|
A
|
Atlanta Braves Holdings Inc
NASDAQ:BATRK
|
US |
|
P
|
PNC Financial Services Group Inc
DUS:PNP
|
US |
|
Hacksaw AB
F:51R
|
SE |
|
L
|
Lagardere SA
XHAM:LAG
|
FR |
|
Bayerische Motoren Werke AG
XETRA:BMW
|
DE |
|
B
|
BASF SE
SWB:BAS
|
DE |
|
Dundee Precious Metals Inc
TSX:DPM
|
CA |
|
T
|
Thinkon Semiconductor Jinzhou Corp
SSE:688233
|
CN |
|
A
|
Avrupa Minerals Ltd
OTC:AVPMF
|
CA |
|
Exide Industries Ltd
NSE:EXIDEIND
|
IN |
|
S
|
Sterling Tools Ltd
BSE:530759
|
IN |
|
W
|
Wooriro Co Ltd
KOSDAQ:046970
|
KR |
Discount Rate
CM Cost of Equity
Discount Rate
CM's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7%. The Beta, indicating the stock's volatility relative to the market, is 0.68, while the current Risk-Free Rate, based on government bond yields, is 4%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is CM's discount rate?
CM's current Cost of Equity is 7%.
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 CM 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
CM