Roots Corp
TSX:ROOT
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Roots Corp
TSX:ROOT
|
CA |
|
HRnetGroup Ltd
SGX:CHZ
|
SG |
|
Z
|
ZeusCo Ltd
KOSDAQ:079370
|
KR |
|
iSIGN Media Solutions Inc
XTSX:ISD
|
CA |
|
G
|
Green Plains Inc
F:G3V
|
US |
|
S
|
Suntrust Resort Holdings Inc
XPHS:SUN
|
PH |
|
TeamSpirit Inc
TSE:4397
|
JP |
|
SandRidge Energy Inc
NYSE:SD
|
US |
|
B
|
Blade Air Mobility Inc
NASDAQ:BLDE
|
US |
|
Taishin Financial Holding Co Ltd
TWSE:2887
|
TW |
|
G
|
Globe Life Inc
DUS:TMJ
|
US |
|
Bank BTPN Syariah Tbk PT
IDX:BTPS
|
ID |
|
DBS Group Holdings Ltd
OTC:DBSDF
|
SG |
|
Eledon Pharmaceuticals Inc
NASDAQ:ELDN
|
US |
|
One World Products Inc
OTC:OWPC
|
US |
|
N
|
Northern Lion Gold Corp
XTSX:NL
|
CA |
|
Aluflexpack AG
SIX:AFP
|
CH |
|
A
|
Aktienbrauerei Kaufbeuren AG
XMUN:ABK
|
DE |
|
Mattel Inc
NASDAQ:MAT
|
US |
|
L
|
Lennar Corp
DUS:LNN
|
US |
|
MGX Minerals Inc
F:1MG
|
CA |
|
P
|
Petrolimex Petrochemical Corp JSC
VN:PLC
|
VN |
|
Broadway Financial Corp
NASDAQ:BYFC
|
US |
|
M
|
Mitsui E&S Holdings Co Ltd
XBER:MU1
|
JP |
Discount Rate
ROOT Cost of Equity
Discount Rate
ROOT's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.1%. The Beta, indicating the stock's volatility relative to the market, is 0.78, while the current Risk-Free Rate, based on government bond yields, is 3.75%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
ROOT WACC
Discount Rate
ROOT'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 6.75%. This includes the cost of equity at 7.1%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 5.16%, reflecting the interest rate on ROOT's debt adjusted for tax benefits. The weight of debt in the capital structure is 33.25%.
What is ROOT's discount rate?
ROOT's current Cost of Equity is 7.1%, while its WACC stands at 6.75%. 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 ROOT 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
ROOT
How is WACC for ROOT 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
ROOT
