Sydbank A/S
XBER:TM2
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
S
|
Sydbank A/S
XBER:TM2
|
DK |
|
S
|
Shriram Properties Ltd
BSE:543419
|
IN |
|
U
|
Unitika Ltd
XBER:UTN
|
JP |
|
W
|
Witted Megacorp Oyj
OMXH:WITTED
|
FI |
|
D
|
DeFi Development Corp
XMUN:F6S0
|
US |
|
Aston Martin Lagonda Global Holdings PLC
F:A5SA
|
UK |
|
E
|
Equinix Inc
SWB:EQN2
|
US |
|
D
|
Dexus
OTC:DEXSF
|
AU |
|
C
|
Cincinnati Financial Corp
SWB:CCJ
|
US |
|
N
|
Nel ASA
DUS:D7G
|
NO |
|
Fomento de Construcciones y Contratas SA
MAD:FCC
|
ES |
|
S
|
Sovereign Metals Ltd
LSE:SVML
|
AU |
|
T
|
Toyota Industries Corp
XBER:TAH
|
JP |
|
D
|
DSM-Firmenich AG
AEX:DSFIR
|
CH |
|
Akamai Technologies Inc
LSE:0HBQ
|
US |
|
Estee Lauder Companies Inc
BMV:EL
|
US |
|
Neutra Corp
OTC:NTRR
|
US |
|
S
|
SBI Holdings Inc
XBER:ZOF
|
JP |
|
K
|
Klondike Silver Corp
OTC:KLSVF
|
CA |
Discount Rate
TM2 Cost of Equity
Discount Rate
TM2's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 5.71%. 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 2.58%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is TM2's discount rate?
TM2's current Cost of Equity is 5.71%.
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 TM2 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
TM2
