Muenchener Rueckversicherungs Gesellschaft in Muenchen AG
DUS:MUV2
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Muenchener Rueckversicherungs Gesellschaft in Muenchen AG
DUS:MUV2
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C
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China Petroleum & Chemical Corp
SWB:CHU
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CN |
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M
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McDonald's Corp
SGO:MCD
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US |
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Orange SA
MIL:1ORA
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FR |
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D
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Dollar Tree Inc
XBER:DT3
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E
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EDP Energias de Portugal SA
XMUN:EDP
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PT |
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Vivoryon Therapeutics NV
LSE:0R3M
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DE |
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Northeast Community Bancorp Inc
NASDAQ:NECB
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W
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Waste Connections Inc
F:UI51
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CA |
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M
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Mastercard Inc
DUS:M4I
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US |
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Walgreens Boots Alliance Inc
NASDAQ:WBA
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B
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Bank Handlowy w Warszawie SA
XMUN:6HW
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PL |
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W
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Wharf Holdings Ltd
XMUN:WHA
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HK |
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K'S Holdings Corp
TSE:8282
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JP |
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Amber International Holding Ltd
NASDAQ:AMBR
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HK |
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P
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Palantir Technologies Inc
XETRA:PTX
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US |
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Indian Oil Corporation Ltd
NSE:IOC
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IN |
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L
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La-Z-Boy Inc
SWB:LAZ
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T
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TX Group AG
SIX:TXGN
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Brown-Forman Corp
NYSE:BF.A
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Discount Rate
MUV2 Cost of Equity
Discount Rate
MUV2's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 5.9%. The Beta, indicating the stock's volatility relative to the market, is 0.73, 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 MUV2's discount rate?
MUV2's current Cost of Equity is 5.9%.
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 MUV2 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
MUV2
