Banco Bilbao Vizcaya Argentaria SA
DUS:BOY
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B
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Banco Bilbao Vizcaya Argentaria SA
DUS:BOY
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ES |
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Y
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Yum! Brands Inc
DUS:TGR
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US |
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W
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Wendys Co
XMUN:TQK
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US |
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Orix Corp
OTC:ORXCF
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JP |
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B
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Bank of America Corp
BMV:BAC
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US |
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S
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System1 Group PLC
XBER:BBA
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UK |
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Nedbank Group Ltd
OTC:NDBKY
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ZA |
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MTU Aero Engines AG
OTC:MTUAF
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DE |
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I
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Infineon Technologies AG
DUS:IFX
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DE |
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Avenue Supermarts Ltd
NSE:DMART
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IN |
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L
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Life Healthcare Group Holdings Ltd
SWB:L53
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ZA |
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D
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Dai Nippon Printing Co Ltd
F:DNP
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JP |
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E
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Elis SA
F:7EL
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FR |
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D
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D'Ieteren Group NV
DUS:DJDA
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BE |
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A
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Avnet Inc
XMUN:VNI
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US |
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M
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Mit SIM SpA
MIL:MTS
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IT |
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C
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CVS Health Corp
XMUN:CVS
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US |
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I
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Infineon Technologies AG
MIL:IFX
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DE |
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K
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Kuehne und Nagel International AG
XHAM:KNIA
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CH |
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M
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Marathon Petroleum Corp
XETRA:MPN
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US |
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T
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TC Energy Corp
F:TRS
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CA |
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T
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Tegna Inc
XMUN:GTT
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US |
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I
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ITV PLC
XBER:IJ7
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UK |
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C
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Cashbuild Ltd
JSE:CSB
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ZA |
Discount Rate
BOY Cost of Equity
Discount Rate
BOY's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.48%. 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 3.35%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is BOY's discount rate?
BOY's current Cost of Equity is 6.48%.
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 BOY 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
BOY
