Muenchener Rueckversicherungs Gesellschaft in Muenchen AG
F:MUV2
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M
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Muenchener Rueckversicherungs Gesellschaft in Muenchen AG
F:MUV2
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DE |
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O
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Oriental Land Co Ltd
OTC:OLCLY
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JP |
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T
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Terna Rete Elettrica Nazionale SpA
LSE:0LBM
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IT |
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CLARIVATE PLC
NYSE:CLVT
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UK |
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G
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General Mills Inc
SWB:GRM
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US |
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U
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Union Pacific Corp
XMUN:UNP
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US |
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S
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Sun Communities Inc
F:SCZ
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US |
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N
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National Australia Bank Ltd
XMUN:NAL
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AU |
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E
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Equitable Holdings Inc
SWB:AXJ
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US |
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P
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Pfizer Inc
DUS:PFE
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US |
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A
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Abbvie Inc
SIX:ABBV
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US |
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Manhattan Associates Inc
NASDAQ:MANH
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US |
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8
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8x8 Inc
XBER:EGT
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US |
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P
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Papa John's International Inc
XMUN:PP1
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US |
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U
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Union Pacific Corp
LSE:0R2E
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US |
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F
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First Community Corp (South Carolina)
F:87Z
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US |
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I
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Income Opportunity Realty Investors Inc
AMEX:IOR
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US |
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BCE Inc
TSX:BCE
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CA |
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M
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Medpace Holdings Inc
F:01P
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US |
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P
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Postal Savings Bank of China Co Ltd
SWB:3YB
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CN |
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Celestica Inc
F:CTW0
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CA |
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H
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Hershey Co
XHAM:HSY
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US |
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 5.9%. The Beta, indicating the stock's volatility relative to the market, is 0.73, while the current Risk-Free Rate, based on government bond yields, is 2.85%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is MUV2's discount rate?
MUV2's current Cost of Equity is 5.9%.
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