Deutsche Bank AG
BMV:DBN
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
D
|
Deutsche Bank AG
BMV:DBN
|
DE |
|
N
|
News Corp
LSE:0K7V
|
US |
|
Z
|
Zoom Video Communications Inc
F:5ZM
|
US |
|
F
|
Fidelity National Information Services Inc
F:ZGY
|
US |
|
HAL Trust
F:HA4
|
MC |
|
S
|
Smith Micro Software Inc
SWB:SS91
|
US |
|
Banco Bilbao Vizcaya Argentaria SA
XETRA:BOY
|
ES |
|
G
|
Global Payments Inc
F:GLO
|
US |
|
Sariguna Primatirta Tbk PT
IDX:CLEO
|
ID |
|
H
|
Henderson Land Development Co Ltd
SWB:HLD
|
HK |
|
R
|
Rio Tinto Ltd
XMUN:CRA1
|
AU |
|
Brown-Forman Corp
NYSE:BF.B
|
US |
|
R
|
Rollins Inc
SWB:RLS
|
US |
|
N
|
Nampak Ltd
JSE:NPK
|
ZA |
|
Chubb Ltd
NYSE:CB
|
CH |
|
B
|
BAE Systems PLC
XMUN:BSP
|
UK |
|
J
|
Juniper Networks Inc
F:JNP
|
US |
|
Cheniere Energy Partners LP
NYSE:CQP
|
US |
|
Konami Group Corp
F:KOA0
|
JP |
Discount Rate
DBN Cost of Equity
Discount Rate
DBN's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.36%. The Beta, indicating the stock's volatility relative to the market, is 0.84, while the current Risk-Free Rate, based on government bond yields, is 2.85%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is DBN's discount rate?
DBN's current Cost of Equity is 6.36%.
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 DBN 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
DBN
