Discover Financial Services
XMUN:DC7
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D
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Discover Financial Services
XMUN:DC7
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US |
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Viasat Inc
F:VS1
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US |
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Wolters Kluwer NV
OTC:WOLTF
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NL |
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A
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Aluminum Corporation of China Ltd
SWB:AOC
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CN |
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S
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Stryker Corp
XMUN:SYK
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E
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Ecolab Inc
XMUN:ECJ
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E
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Experian PLC
F:J2B
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IE |
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F
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flatexDEGIRO AG
XMUN:FTK
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DE |
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Dentsu Group Inc
F:DEN0
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Weatherford International PLC
NASDAQ:WFRD
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C
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Christian Dior SE
SWB:DIO
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M
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Magna International Inc
XMUN:MGA
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Ence Energia y Celulosa SA
SWB:ENCA
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K
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KGHM Polska Miedz SA
SWB:KGHA
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Triumph New Energy Co Ltd
F:LUG
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Valiant Holding AG
OTC:VALIF
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C
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Carlsberg A/S
F:CBGA
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F
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First Graphene Ltd
OTC:FGPHF
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G
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Gaussin SA
XMUN:1KK1
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F
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First Solar Inc
XMUN:F3A
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P
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Penumbra Inc
SWB:0P8
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O
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Oculis Holding AG
SWB:CR5
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Northam Platinum Holdings Ltd
JSE:NPH
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D
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Dakota Gold Corp
F:RR6
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US |
Discount Rate
DC7 Cost of Equity
Discount Rate
DC7's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.89%. The Beta, indicating the stock's volatility relative to the market, is 0.83, while the current Risk-Free Rate, based on government bond yields, is 4.42%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is DC7's discount rate?
DC7's current Cost of Equity is 7.89%.
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 DC7 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
DC7
