CMS Energy Corp
LSE:0HR4
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
C
|
CMS Energy Corp
LSE:0HR4
|
US |
|
M
|
M4B SA
WSE:M4B
|
PL |
|
Altarea SCA
PAR:ALTA
|
FR |
|
N
|
Nationale Bank Van Belgie NV
F:BKB
|
BE |
|
Academy Sports and Outdoors Inc
NASDAQ:ASO
|
US |
|
MedPeer Inc
F:9UN
|
JP |
|
Sega Sammy Holdings Inc
OTC:SGAMY
|
JP |
|
Total Graphite PLC
LSE:TGR
|
UK |
|
G
|
Goodyear Tire & Rubber Co
SWB:GTR
|
US |
|
Galenica AG
F:G70
|
CH |
|
E
|
EBOS Group Ltd
F:EJG
|
AU |
|
E
|
Energy of Minas Gerais Co
SWB:CID
|
BR |
|
Novatti Group Ltd
ASX:NOV
|
AU |
|
Sumitomo Forestry Co Ltd
OTC:SMFRF
|
JP |
|
Rubrik Inc
NYSE:RBRK
|
US |
|
G
|
Goodyear Tire & Rubber Co
F:GTR
|
US |
|
M
|
Mpact Ltd
JSE:MPT
|
ZA |
|
Schindler Holding AG
LSE:0QOT
|
CH |
|
Nippon Steel Corp
TSE:5401
|
JP |
|
Telix Pharmaceuticals Ltd
ASX:TLX
|
AU |
|
Peruvian Metals Corp
XTSX:PER
|
CA |
|
Nomura Research Institute Ltd
TSE:4307
|
JP |
|
Openlearning Ltd
ASX:OLL
|
AU |
|
C
|
Cochlear Ltd
OTC:CHEOF
|
AU |
Discount Rate
0HR4 Cost of Equity
Discount Rate
0HR4's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.9%. The Beta, indicating the stock's volatility relative to the market, is 0.74, 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%.
0HR4 WACC
Discount Rate
0HR4'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 7.72%. This includes the cost of equity at 7.9%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 5.61%, reflecting the interest rate on 0HR4's debt adjusted for tax benefits. The weight of debt in the capital structure is 46.28%.
What is 0HR4's discount rate?
0HR4's current Cost of Equity is 7.9%, while its WACC stands at 7.72%. 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 0HR4 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
0HR4
How is WACC for 0HR4 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
0HR4