Antero Midstream Corp
F:5711
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Antero Midstream Corp
F:5711
|
US |
|
Impala Platinum Holdings Ltd
LSE:0S2J
|
ZA |
|
Cryoport Inc
NASDAQ:CYRX
|
US |
|
I
|
Industrie De Nora SpA
F:M3D
|
IT |
|
M
|
Moshi Moshi Retail Corporation PCL
SET:MOSHI
|
TH |
|
Onespaworld Holdings Ltd
F:ORW
|
BS |
|
M
|
Mitsubishi Electric Corp
DUS:MIE1
|
JP |
|
TOMI Environmental Solutions Inc
NASDAQ:TOMZ
|
US |
|
S
|
Swiss Re AG
XHAM:SR9
|
CH |
|
K
|
KKR & Co Inc
SWB:KR51
|
US |
|
N
|
Nexon Co Ltd
F:7NX
|
JP |
|
A
|
Aegean Airlines SA
XBER:32A
|
GR |
|
B
|
Barrick Gold Corp
XHAM:ABR
|
CA |
|
P
|
Pfizer Inc
BMV:PFE
|
US |
|
Pinterest Inc
NYSE:PINS
|
US |
|
A
|
AXA SA
XBER:AXA
|
FR |
|
P
|
Porr AG
DUS:ABS2
|
AT |
|
W
|
Wells Fargo & Co
BMV:WFC
|
US |
|
Tharisa PLC
F:7YZ
|
CY |
|
Ares Commercial Real Estate Corp
NYSE:ACRE
|
US |
|
G
|
Gaming and Leisure Properties Inc
F:2GL
|
US |
|
F
|
Fujikura Ltd
DUS:FJK
|
JP |
|
A
|
Autodesk Inc
F:AUD
|
US |
|
R
|
Rayonier Inc
BMV:RYN
|
US |
Discount Rate
Cost of Equity
Discount Rate
Antero Midstream Corp's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.85%. The Beta, indicating the stock's volatility relative to the market, is 0.82, while the current Risk-Free Rate, based on government bond yields, is 4.42%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
WACC
Discount Rate
Antero Midstream Corp'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 7.42%. This includes the cost of equity at 7.85%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 5.33%, reflecting the interest rate on Antero Midstream Corp's debt adjusted for tax benefits. The weight of debt in the capital structure is 23.72%.
What is Antero Midstream Corp's discount rate?
Antero Midstream Corp's current Cost of Equity is 7.85%, while its WACC stands at 7.42%. 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 Antero Midstream Corp 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
Antero Midstream Corp
How is WACC for Antero Midstream Corp 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
Antero Midstream Corp
