CTBC Financial Holding Co Ltd
TWSE:2891C
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
CTBC Financial Holding Co Ltd
TWSE:2891C
|
TW |
|
C
|
Constellation Brands Inc
XMUN:CB1A
|
US |
|
Vertex Inc
LSE:0A3L
|
US |
|
EHang Holdings Ltd
NASDAQ:EH
|
CN |
|
Vonovia SE
F:VNAA
|
DE |
|
Philogen SpA
F:78Q
|
IT |
|
Distribution Solutions Group Inc
F:LW2
|
US |
|
C
|
Cummins Inc
XBER:CUM
|
US |
|
Ziprecruiter Inc
NYSE:ZIP
|
US |
|
Concurrent Technologies PLC
LSE:CNC
|
UK |
|
Nanofilm Technologies International Ltd
OTC:NNFTF
|
SG |
|
T
|
Tempur Sealy International Inc
NYSE:SGI
|
US |
|
MR Bricolage SA
PAR:ALMRB
|
FR |
|
C
|
CIMB Group Holdings Bhd
KLSE:CIMB
|
MY |
|
N
|
Nintendo Co Ltd
XBER:NTO
|
JP |
|
F
|
Fossil Group Inc
SWB:FSL
|
US |
|
Azul SA
NYSE:AZUL
|
BR |
Discount Rate
2891C Cost of Equity
Discount Rate
2891C's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 4.76%. 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 1.67%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is 2891C's discount rate?
2891C's current Cost of Equity is 4.76%.
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 2891C 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
2891C
