Kemper Corp
F:UI2
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K
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Kemper Corp
F:UI2
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US |
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A
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American Electric Power Company Inc
XMUN:AEP
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M
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D
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Diageo PLC
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N
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Northern Trust Corp
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P
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Pernod Ricard SA
F:PER
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FR |
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F
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Fortescue Ltd
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Urban Edge Properties
F:3UE
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Beijing Enterprises Water Group Ltd
F:HUN2
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HK |
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D
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Deutsche Post AG
XMUN:DHL
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DE |
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N
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Nordic American Tanker Ltd
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BM |
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B
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Brightview Holdings Inc
NYSE:BV
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I
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Iss A/S
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O
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Olin Corp
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M
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MTU Aero Engines AG
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DE |
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Mizuho Financial Group Inc
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KCE Electronics PCL
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Fresnillo PLC
LSE:FRES
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MX |
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P
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Pioneer Natural Resources Co
DUS:PNK
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M
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MakeMyTrip Ltd
SWB:MY1
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IN |
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N
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National Bank of Canada
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M
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MAG Silver Corp
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Discount Rate
UI2 Cost of Equity
Discount Rate
UI2's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.58%. The Beta, indicating the stock's volatility relative to the market, is 0.75, while the current Risk-Free Rate, based on government bond yields, is 4.44%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is UI2's discount rate?
UI2's current Cost of Equity is 7.58%.
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 UI2 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
UI2
