Powszechny Zaklad Ubezpieczen SA
WSE:PZU
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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Powszechny Zaklad Ubezpieczen SA
WSE:PZU
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CA |
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Healthcare Services Group Inc
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Titijaya Land Bhd
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MY |
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Quality Construction Products PCL
SET:Q-CON
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Ziel Home Furnishing Technology Co Ltd
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Turker Proje Gayrimenkul Ve Yatirim Gelistirme AS
IST:TURGG.E
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Coolpad Group Ltd
OTC:CHWTF
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Heineken NV
OTC:HINKF
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Cipher Mining Inc
NASDAQ:CIFR
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Shijihengtong Technology Co Ltd
SZSE:301428
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NPC Inc
TSE:6255
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Immunitybio Inc
NASDAQ:IBRX
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Genesis Healthcare Inc
OTC:GENN
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Wah Lee Industrial Corp
TWSE:3010
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Turkiye Kalkinma ve Yatirim Bankasi AS
IST:KLNMA.E
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TR |
Discount Rate
PZU Cost of Equity
Discount Rate
PZU's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.99%. The Beta, indicating the stock's volatility relative to the market, is 0.75, while the current Risk-Free Rate, based on government bond yields, is 5.85%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is PZU's discount rate?
PZU 's current Cost of Equity is 8.99%.
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 PZU 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 PZU
