Vertex Pharmaceuticals Inc
XMUN:VX1
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
V
|
Vertex Pharmaceuticals Inc
XMUN:VX1
|
US |
|
A
|
ANSYS Inc
XBER:AKX
|
US |
|
Charter Communications Inc
NASDAQ:CHTR
|
US |
|
B
|
Budweiser Brewing Company APAC Ltd
OTC:BDWBF
|
HK |
|
R
|
Recordati Industria Chimica e Farmaceutica SpA
SWB:RER1
|
IT |
|
H
|
Humana Inc
SWB:HUM
|
US |
|
C
|
Coloplast A/S
F:CBHD
|
DK |
|
Petroleo Brasileiro SA Petrobras
F:PJXB
|
BR |
|
Thales SA
F:CSF0
|
FR |
|
St Dupont SA
PAR:DPT
|
FR |
|
G
|
Green Thumb Industries Inc
XMUN:R9U2
|
US |
|
S
|
SBA Communications Corp
XBER:4SB
|
US |
|
C
|
Coca-Cola Europacific Partners PLC
AEX:CCEP
|
UK |
|
U
|
Unicaja Banco SA
SWB:7UB
|
ES |
|
E
|
Ecopetrol SA
BMV:ECN
|
CO |
|
K
|
Kinross Gold Corp
XBER:KIN2
|
CA |
|
A
|
American Express Co
SWB:AEC1
|
US |
|
C
|
Crown Castle International Corp
F:8CW
|
US |
|
E
|
Eiffage SA
DUS:EF3
|
FR |
|
M
|
MSA Safety Inc
SWB:M07
|
US |
|
A
|
Assicurazioni Generali SpA
DUS:ASG
|
IT |
|
B
|
Banco Bilbao Vizcaya Argentaria SA
XMUN:BOY
|
ES |
|
M&T Bank Corp
F:MTZ
|
US |
|
Cencora Inc
NYSE:COR
|
US |
Discount Rate
VX1 Cost of Equity
Discount Rate
VX1's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 9.29%. The Beta, indicating the stock's volatility relative to the market, is 1.16, while the current Risk-Free Rate, based on government bond yields, is 4.44%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
VX1 WACC
Discount Rate
VX1's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. The WACC stands at 9.29%. This includes the cost of equity at 9.29%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 13.92%, reflecting the interest rate on VX1's debt adjusted for tax benefits. The weight of debt in the capital structure is 0%.
What is VX1's discount rate?
VX1's current Cost of Equity is 9.29%, while its WACC stands at 9.29%. The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate.
How is Cost of Equity for VX1 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
VX1
How is WACC for VX1 calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for
VX1
