Mitsubishi HC Capital Inc
F:5B4
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Mitsubishi HC Capital Inc
F:5B4
|
JP |
|
N
|
New Residential Investment Corp
F:14N1
|
US |
|
A
|
ASML Holding NV
F:ASME
|
NL |
|
H
|
HSBC Holdings PLC
SGX:PU6D
|
UK |
|
B
|
Boeing Co
XHAM:BCO
|
US |
|
A
|
Analog Devices Inc
SWB:ANL
|
US |
|
P
|
Pennant Group Inc
F:1ZU
|
US |
|
DSV A/S
OTC:DSDVF
|
DK |
|
MTN Group Ltd
OTC:MTNOY
|
ZA |
|
PT Dayamitra Telekomunikasi Tbk
IDX:MTEL
|
ID |
|
U
|
US Bancorp
SWB:UB5
|
US |
|
K
|
Kemper Corp
F:UI2
|
US |
|
Sotera Health Co
NASDAQ:SHC
|
US |
|
B
|
Bandai Namco Holdings Inc
SWB:N9B
|
JP |
|
P
|
Premium Group Co Ltd
OTC:PMMFF
|
JP |
|
Pernod Ricard SA
PAR:RI
|
FR |
|
F
|
Freeport-McMoRan Inc
LSE:0R2O
|
US |
|
Robinhood Markets Inc
F:7KY
|
US |
|
Trip.com Group Ltd
HKEX:9961
|
CN |
|
Fortinet Inc
NASDAQ:FTNT
|
US |
|
Henderson Land Development Co Ltd
OTC:HLDVF
|
HK |
|
A
|
Abb Ltd
XBER:ABJA
|
CH |
|
OLB Group Inc
NASDAQ:OLB
|
US |
|
R
|
Resmed Inc
F:RME
|
US |
Discount Rate
5B4 Cost of Equity
Discount Rate
5B4's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 5.99%. The Beta, indicating the stock's volatility relative to the market, is 0.83, while the current Risk-Free Rate, based on government bond yields, is 2.52%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
5B4 WACC
Discount Rate
5B4'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 5.52%. This includes the cost of equity at 5.99%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 4.8%, reflecting the interest rate on 5B4's debt adjusted for tax benefits. The weight of debt in the capital structure is 78.7%.
What is 5B4's discount rate?
5B4's current Cost of Equity is 5.99%, while its WACC stands at 5.52%. 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 5B4 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
5B4
How is WACC for 5B4 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
5B4
