Loncor Gold Inc
TSX:LN
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Loncor Gold Inc
TSX:LN
|
CA |
|
Beigene Ltd
SSE:688235
|
KY |
|
Unionman Technology Co Ltd
SSE:688609
|
CN |
|
Elkem ASA
OSE:ELK
|
NO |
|
Safestore Holdings PLC
LSE:SAFE
|
UK |
|
O
|
OpenWork Inc
TSE:5139
|
JP |
|
Mitchell Services Ltd
ASX:MSV
|
AU |
|
A
|
Answear.Com SA
WSE:ANR
|
PL |
|
YG Plus Inc
KRX:037270
|
KR |
|
Amiyaki Tei Co Ltd
TSE:2753
|
JP |
|
Safehold Inc
NYSE:SAFE
|
US |
|
Taiwan Taffeta Fabric Co Ltd
TWSE:1454
|
TW |
|
CMMB Vision Holdings Ltd
HKEX:471
|
HK |
|
Shanghai Pudong Development Bank Co Ltd
SSE:600000
|
CN |
|
Telefast Indonesia Tbk PT
IDX:TFAS
|
ID |
|
Essential Energy Services Ltd
TSX:ESN
|
CA |
|
System Support Inc
TSE:4396
|
JP |
|
Universal Health Services Inc
NYSE:UHS
|
US |
|
D
|
Domiki Kritis SA
ATHEX:DOMIK
|
GR |
|
Metro Holdings Ltd
SGX:M01
|
SG |
|
Mr DIY Group (M) Bhd
OTC:MDIYF
|
MY |
|
R
|
Rane (Madras) Ltd
NSE:RML
|
IN |
|
S
|
Shaanxi Meibang Pharmaceutical Group Co Ltd
SSE:605033
|
CN |
|
Mink Therapeutics Inc
NASDAQ:INKT
|
US |
Discount Rate
LN Cost of Equity
Discount Rate
LN's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 8.3%.
The Beta, indicating the stock's volatility relative to the market, is 1.04, while the current Risk-Free Rate, based on government bond yields, is 3.95%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
LN WACC
Discount Rate
LN'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 8.3%. This includes the cost of equity at 8.3%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 8.6%, reflecting the interest rate on
LN's debt adjusted for tax benefits. The weight of debt in the capital structure is 0.1%.
What is LN's discount rate?
LN
's current Cost of Equity is 8.3%, while its WACC stands at 8.3%.
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 LN 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
LN
How is WACC for LN 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
LN
