Muenchener Rueckversicherungs Gesellschaft in Muenchen AG
DUS:MUV2
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Muenchener Rueckversicherungs Gesellschaft in Muenchen AG
DUS:MUV2
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Digital Turbine Inc
LSE:0A6A
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G
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General Electric Co
DUS:GCP
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US |
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Heritage Insurance Holdings Inc
F:11H
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US |
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H
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Hon Hai Precision Industry Co Ltd
SWB:HHP2
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TW |
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T
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Toyota Tsusho Corp
SWB:9TO
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JP |
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B
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Blessed Textiles Ltd
KAR:BTL
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PK |
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B
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BCPG PCL
SET:BCPG
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TH |
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S
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Solstad Maritime ASA
OSE:SOMA
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NO |
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O
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Oceaneering International Inc
SWB:OII
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US |
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Urban Edge Properties
NYSE:UE
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US |
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R
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Rio Tinto Ltd
SWB:CRA1
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AU |
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J
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Johnson Controls International PLC
F:TYIA
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IE |
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B
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Bank of New York Mellon Corp
LSE:0HLQ
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US |
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U
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UFP Technologies Inc
XMUN:UFP
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US |
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M
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MGM Resorts International
DUS:MGG
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US |
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Inventiva SA
PAR:IVA
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FR |
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 6.3%. 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 3.29%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is MUV2's discount rate?
MUV2's current Cost of Equity is 6.3%.
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