Bank Negara Indonesia (Persero) Tbk PT
XMUN:BKE1
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B
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Bank Negara Indonesia (Persero) Tbk PT
XMUN:BKE1
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ID |
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Kasikornbank PCL
SET:KBANK
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TH |
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O
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OrganiGram Holdings Inc
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CA |
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Z
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Zen Technologies Ltd
BSE:533339
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IN |
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C
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China Life Insurance Co Ltd
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CN |
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Piedmont Lithium Inc
NASDAQ:PLL
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US |
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P
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PGE Polska Grupa Energetyczna SA
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PL |
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M
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McDonald's Corp
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US |
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G
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Glencore PLC
SWB:8GC
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CH |
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W
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Wintermar Offshore Marine Tbk PT
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ID |
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I
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Investec PLC
LSE:INVR
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UK |
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M
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Molina Healthcare Inc
F:MHG
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US |
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C
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Cigna Group
XMUN:CGN
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US |
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T
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Tonnellerie Francois Freres SA
PAR:TFF
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FR |
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Multi Commodity Exchange of India Ltd
NSE:MCX
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IN |
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Storytel AB (publ)
F:DST
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SE |
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I
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Indian Metals and Ferro Alloys Ltd
BSE:533047
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IN |
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N
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New World Resources Ltd
F:C5W
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AU |
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S
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SosTravel.com SpA
OTC:SOSAF
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IT |
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K
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Kirin Holdings Co Ltd
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JP |
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Porch Group Inc
NASDAQ:PRCH
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US |
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Japan Aviation Electronics Industry Ltd
OTC:JPAVF
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JP |
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A
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Accuray Inc
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US |
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Douyu International Holdings Ltd
F:DY8
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CN |
Discount Rate
BKE1 Cost of Equity
Discount Rate
BKE1's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 9.84%. 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 6.71%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is BKE1's discount rate?
BKE1's current Cost of Equity is 9.84%.
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 BKE1 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
BKE1
