Tanco Holdings Bhd
KLSE:TANCO
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
T
|
Tanco Holdings Bhd
KLSE:TANCO
|
MY |
|
Hera SpA
MIL:HER
|
IT |
|
M
|
Million Hope Industries Holdings Ltd
HKEX:1897
|
HK |
|
E
|
Edarat Communication and Information Technology Co
SAU:9557
|
SA |
|
F
|
Fujitec Co Ltd
TSE:6406
|
JP |
|
J
|
Jiangsu Sanfame Polyester Material Co Ltd
SSE:600370
|
CN |
|
ShenZhen Yitoa Intelligent Control Co Ltd
SZSE:300131
|
CN |
|
T
|
TEAM Consulting Engineering and Management PCL
SET:TEAMG
|
TH |
|
Jayride Group Ltd
ASX:JAY
|
AU |
|
NN Group NV
AEX:NN
|
NL |
|
China Southern Power Grid Energy Efficiency&Clean Energy Co Ltd
SZSE:003035
|
CN |
|
Pharmaron Beijing Co Ltd
SZSE:300759
|
CN |
|
Tianqi Lithium Corp
SZSE:002466
|
CN |
|
S
|
SDI Group PLC
LSE:SDI
|
UK |
|
Sumitomo Metal Mining Co Ltd
TSE:5713
|
JP |
|
Beijing Kingsoft Office Software Inc
SSE:688111
|
CN |
|
K
|
KeyMed Biosciences Inc
HKEX:2162
|
CN |
Discount Rate
TANCO Cost of Equity
Discount Rate
TANCO's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.33%. The Beta, indicating the stock's volatility relative to the market, is 0.91, while the current Risk-Free Rate, based on government bond yields, is 3.53%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
TANCO WACC
Discount Rate
TANCO's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. The WACC stands at 7.31%. This includes the cost of equity at 7.33%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 4.21%, reflecting the interest rate on TANCO's debt adjusted for tax benefits. The weight of debt in the capital structure is 0.49%.
What is TANCO's discount rate?
TANCO 's current Cost of Equity is 7.33%, while its WACC stands at 7.31%. The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.
For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.
For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate."
How is Cost of Equity for TANCO 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 TANCO
How is WACC for TANCO calculated?
WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.
The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.
Here is how we calculate WACC for TANCO
