Manulife Financial Corp
XMUN:MLU
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
M
|
Manulife Financial Corp
XMUN:MLU
|
CA |
|
A
|
ArcelorMittal SA
SWB:ARRD
|
LU |
|
K
|
Krakatau Steel (Persero) Tbk PT
XMUN:07K
|
ID |
|
T
|
Telekom Austria AG
VSE:TKA
|
AT |
|
I
|
Intel Corp
DUS:INL
|
US |
|
P
|
Primeenergy Resources Corp
F:PEJ
|
US |
|
Centuria Capital Group
OTC:CNECF
|
AU |
|
ASE Technology Holding Co Ltd
F:2DQ
|
TW |
|
V
|
Veritiv Corp
F:288
|
US |
|
T
|
TIPCO Asphalt PCL
SET:TASCO
|
TH |
|
ZTO Express (Cayman) Inc
F:ZTOB
|
CN |
|
D
|
Darling Ingredients Inc
SWB:43D
|
US |
|
T
|
Turning Point Brands Inc
SWB:0T5
|
US |
|
A
|
American States Water Co
XBER:FDK
|
US |
|
L
|
London Stock Exchange Group PLC
OTC:LDNXF
|
UK |
|
T
|
T Rowe Price Group Inc
XMUN:TR1
|
US |
|
S
|
Space Exploration Technologies Corp
VSE:SPCX
|
US |
|
U
|
USANA Health Sciences Inc
XMUN:USJ
|
US |
|
B
|
BHP Group Ltd
F:BHP
|
AU |
|
B
|
Bear Creek Mining Corp
XTSX:BCM
|
CA |
|
R
|
RWE AG
XHAM:RWE
|
DE |
Discount Rate
MLU Cost of Equity
Discount Rate
MLU's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.6%. The Beta, indicating the stock's volatility relative to the market, is 0.7, while the current Risk-Free Rate, based on government bond yields, is 3.59%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is MLU's discount rate?
MLU's current Cost of Equity is 6.6%.
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 MLU 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
MLU
