Prudential PLC
F:PRU2
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
P
|
Prudential PLC
F:PRU2
|
UK |
|
China CSSC Holdings Ltd
SSE:600150
|
CN |
|
M
|
Moelis & Co
F:17M
|
US |
|
I
|
Interface Inc
SWB:IF6N
|
US |
|
C
|
Coloplast A/S
F:CBHD
|
DK |
|
Stockland Corporation Ltd
ASX:SGP
|
AU |
|
A
|
Applied Materials Inc
F:AP2
|
US |
|
M
|
Mondelez International Inc
XBER:KTF
|
US |
|
Mastercard Inc
NYSE:MA
|
US |
|
C
|
Coca-Cola Co
F:CCC3
|
US |
|
Beijing-Shanghai High Speed Railway Co Ltd
SSE:601816
|
CN |
|
A
|
Amazon.com Inc
SWB:AMZ
|
US |
|
K
|
Kulicke and Soffa Industries Inc
F:KU1
|
SG |
|
L
|
LH Shopping Centers Leasehold Real Estate Investment Trust
SET:LHSC
|
TH |
|
C
|
CorMedix Inc
SWB:19KA
|
US |
|
E
|
Empresa Distribuidora y Comercializadora Norte SA
BCBA:EDN
|
AR |
|
C
|
Credit Suisse Group AG
F:CSX
|
CH |
|
Sekisui Chemical Co Ltd
F:SUI
|
JP |
|
T
|
Truworths International Ltd
JSE:TRU
|
ZA |
|
N
|
Nomura Holdings Inc
SGX:N33
|
JP |
|
W
|
WT Microelectronics Co Ltd
TWSE:3036A
|
TW |
|
W
|
Weyerhaeuser Co
DUS:WHC
|
US |
Discount Rate
PRU2 Cost of Equity
Discount Rate
PRU2's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.73%. 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 4.72%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is PRU2's discount rate?
PRU2's current Cost of Equity is 7.73%.
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 PRU2 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
PRU2
