Mediobanca Banca di Credito Finanziario SpA
F:ME9
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
M
|
Mediobanca Banca di Credito Finanziario SpA
F:ME9
|
IT |
|
I
|
Insmed Inc
LSE:0JAV
|
US |
|
C
|
Compagnie de Saint Gobain SA
OTC:CODYY
|
FR |
|
M
|
Murata Manufacturing Co Ltd
XMUN:MUR1
|
JP |
|
Talanx AG
LSE:0QA8
|
DE |
|
Globe Life Inc
NYSE:GL
|
US |
|
F
|
Fomento de Construcciones y Contratas SA
DUS:FCC
|
ES |
|
E
|
Energy Recovery Inc
XBER:5E2
|
US |
|
T
|
Tsingtao Brewery Co Ltd
DUS:TSI
|
CN |
|
Delivery Hero SE
LSE:0RTC
|
DE |
|
Foschini Group Ltd
OTC:FHHGF
|
ZA |
|
Palo Alto Networks Inc
LSE:0KF5
|
US |
|
I
|
IAMGOLD Corp
NYSE:IAG
|
CA |
|
C
|
Cloudflare Inc
DUS:8CF
|
US |
|
U
|
UDR Inc
F:UF0
|
US |
|
D
|
Dongfang Electric Corp Ltd
XBER:DEU
|
CN |
Discount Rate
ME9 Cost of Equity
Discount Rate
ME9's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.56%. 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 3.56%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is ME9's discount rate?
ME9's current Cost of Equity is 6.56%.
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 ME9 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
ME9
