Franklin Financial Services Corp
NASDAQ:FRAF
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Franklin Financial Services Corp
NASDAQ:FRAF
|
US |
|
Telkom Indonesia (Persero) Tbk PT
IDX:TLKM
|
ID |
|
Lords Group Trading PLC
LSE:LORD
|
UK |
|
Eightco Holdings Inc
NASDAQ:ORBS
|
US |
|
Invesco Mortgage Capital Inc
NYSE:IVR
|
US |
|
Li Auto Inc
F:L87A
|
CN |
|
V
|
Volkswagen AG
XHAN:VOW3
|
DE |
|
S
|
South32 Ltd
LSE:S32
|
AU |
|
A
|
Anixa Biosciences Inc
F:CY71
|
US |
|
F
|
Freehold Royalties Ltd
LSE:0UWL
|
CA |
|
G
|
Graphisoft Park SE Ingatlanfejleszto Europai Rt
F:GUV
|
HU |
|
Chalice Mining Ltd
ASX:CHN
|
AU |
|
Azelis Group NV
XBRU:AZE
|
BE |
|
Nedap NV
AEX:NEDAP
|
NL |
|
L
|
Legrand SA
XBER:LRC
|
FR |
|
Emergent BioSolutions Inc
NYSE:EBS
|
US |
|
Definity Financial Corp
OTC:DFYFF
|
CA |
|
C
|
Cloudflare Inc
XHAN:8CF
|
US |
|
D
|
Dynapack International Technology Corp
TPEX:3211
|
TW |
|
Guangdong Kingstrong Technology Co Ltd
SZSE:300629
|
CN |
|
CY4GATE SpA
F:68H
|
IT |
|
Indika Energy Tbk PT
IDX:INDY
|
ID |
|
Mission Produce Inc
NASDAQ:AVO
|
US |
Discount Rate
FRAF Cost of Equity
Discount Rate
FRAF's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.65%. The Beta, indicating the stock's volatility relative to the market, is 0.69, while the current Risk-Free Rate, based on government bond yields, is 4.65%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is FRAF's discount rate?
FRAF's current Cost of Equity is 7.65%.
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 FRAF 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
FRAF
