Discovery Ltd
F:D3H0
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Discovery Ltd
F:D3H0
|
ZA |
|
V
|
Vidrala SA
SWB:VIR
|
ES |
|
China Citic Bank Corp Ltd
OTC:CHCJY
|
CN |
|
E
|
Eli Lilly and Co
SWB:LLY
|
US |
|
I
|
International Consolidated Airlines Group SA
DUS:INR
|
UK |
|
R
|
Republic Services Inc
SWB:RPU
|
US |
|
Nampak Ltd
F:NNZ0
|
ZA |
|
E
|
Encompass Health Corp
F:HSOA
|
US |
|
Brightspring Health Services Inc
NASDAQ:BTSG
|
US |
|
S
|
Silvercorp Metals Inc
F:S9Y
|
CA |
|
H
|
HeidelbergCement AG
OTC:HLBZF
|
DE |
|
Unico Silver Ltd
ASX:USL
|
AU |
|
Albertsons Companies Inc
F:27S
|
US |
|
H
|
Hecla Mining Co
XETRA:HCL
|
US |
|
H
|
H & M Hennes & Mauritz AB
XHAM:HMSB
|
SE |
|
Arm Holdings PLC
F:O9T
|
UK |
|
Tata Steel Ltd
NSE:TATASTEEL
|
IN |
|
UnitedHealth Group Inc
LSE:0R0O
|
US |
|
G
|
Glencore PLC
SWB:8GC
|
CH |
|
T
|
TC Energy Corp
F:TRS
|
CA |
|
W
|
Wells Fargo & Co
BMV:WFC
|
US |
|
U
|
Uber Technologies Inc
XETRA:UT8
|
US |
|
C
|
Constellation Brands Inc
DUS:CB1A
|
US |
|
G
|
Geo Group Inc
SWB:GEG
|
US |
Discount Rate
D3H0 Cost of Equity
Discount Rate
D3H0's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 11.98%. 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 8.98%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is D3H0's discount rate?
D3H0's current Cost of Equity is 11.98%.
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 D3H0 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 D3H0