Arhaus Inc
NASDAQ:ARHS
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Arhaus Inc
NASDAQ:ARHS
|
US |
|
P
|
Playmates Holdings Ltd
HKEX:635
|
HK |
|
I
|
Intercorp Financial Services Inc
NYSE:IFS
|
PE |
|
N
|
Nomura Real Estate Master Fund Inc
TSE:3462
|
JP |
|
Sekisui House Reit Inc
TSE:3309
|
JP |
|
Usen Next Holdings Co Ltd
TSE:9418
|
JP |
|
Daiseki Co Ltd
TSE:9793
|
JP |
|
F
|
Fujitec Co Ltd
TSE:6406
|
JP |
|
G
|
Global Hydrogen SA
WSE:GHY
|
PL |
|
L
|
LumenRadio AB
STO:LUMEN
|
SE |
|
Exact Sciences Corp
NASDAQ:EXAS
|
US |
|
I
|
Innovative Medical Management Co Ltd
SZSE:002173
|
CN |
|
S
|
Sanbo Hospital Management Group Ltd
SZSE:301293
|
CN |
|
RH
NYSE:RH
|
US |
|
Amarin Corporation PLC
NASDAQ:AMRN
|
IE |
|
Thunderbird Entertainment Group Inc
XTSX:TBRD
|
CA |
|
E
|
Envictus International Holdings Ltd
SGX:BQD
|
SG |
|
Lar Espana Real Estate SOCIMI SA
MAD:LRE
|
ES |
|
S
|
SDI Group PLC
LSE:SDI
|
UK |
|
Beijing Kingsoft Office Software Inc
SSE:688111
|
CN |
|
C
|
China Youran Dairy Group Ltd
HKEX:9858
|
CN |
|
Travis Perkins PLC
LSE:TPK
|
UK |
|
Hansol Chemical Co Ltd
KRX:014680
|
KR |
|
WSP Global Inc
TSX:WSP
|
CA |
Discount Rate
ARHS Cost of Equity
Discount Rate
ARHS's Cost of Equity, calculated using the formula
Risk-Free Rate + Beta x ERP,
stands at 7.21%.
The Beta, indicating the stock's volatility relative to the market, is 0.78, while the current Risk-Free Rate, based on government bond yields, is 3.95%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
ARHS WACC
Discount Rate
ARHS'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 7.3%. This includes the cost of equity at 7.21%, calculated as Risk-Free Rate + Beta x ERP, and the cost of debt at 9.54%, reflecting the interest rate on
ARHS's debt adjusted for tax benefits. The weight of debt in the capital structure is 3.87%.
What is ARHS's discount rate?
ARHS
's current Cost of Equity is 7.21%, while its WACC stands at 7.3%.
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 ARHS 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
ARHS
How is WACC for ARHS 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
ARHS
