Selective Insurance Group Inc
F:SV2
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
S
|
Selective Insurance Group Inc
F:SV2
|
US |
|
1
|
1-800-Flowers.Com Inc
F:FWC
|
US |
|
E
|
Everest Group Ltd
DUS:ERE
|
BM |
|
I
|
Income Opportunity Realty Investors Inc
AMEX:IOR
|
US |
|
M
|
Murphy Oil Corp
XMUN:MUQ
|
US |
|
S
|
Surgery Partners Inc
F:1SP
|
US |
|
Rumble Inc
NASDAQ:RUM
|
US |
|
Lucid Group Inc
F:CH2
|
US |
|
T
|
Truworths International Ltd
SWB:IUE
|
ZA |
|
N
|
Nomura Holdings Inc
F:NSE
|
JP |
|
Boston Beer Company Inc
NYSE:SAM
|
US |
|
SPX Corp
NYSE:SPXC
|
US |
|
Lands End Inc
NASDAQ:LE
|
US |
|
S
|
Schumag AG
DUS:SCM
|
DE |
|
C
|
China Merchants Bank Co Ltd
OTC:CIHHF
|
CN |
|
T
|
Transurban Group
F:TU9
|
AU |
|
Walgreens Boots Alliance Inc
NASDAQ:WBA
|
US |
|
H
|
Hapag Lloyd AG
F:HLAG
|
DE |
|
B
|
Boyd Gaming Corp
SWB:BO5
|
US |
|
RTL Group SA
F:RRTL
|
LU |
|
C
|
Colliers International Group Inc
SWB:FSV
|
CA |
|
S
|
Shin-Etsu Chemical Co Ltd
F:SEH
|
JP |
|
A
|
Ares Capital Corp
XBER:9A2
|
US |
|
Bollore SE
PAR:BOL
|
FR |
Discount Rate
SV2 Cost of Equity
Discount Rate
SV2's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.81%. 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 4.8%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is SV2's discount rate?
SV2's current Cost of Equity is 7.81%.
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 SV2 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
SV2
