Orange County Bancorp Inc
NASDAQ:OBT
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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Orange County Bancorp Inc
NASDAQ:OBT
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A
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Ardelyx Inc
SWB:41X
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Eli Lilly and Co
XHAM:LLY
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FedEx Corp
XBER:FDX
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MSCI Inc
XETRA:3HM
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Bayerische Motoren Werke AG
DUS:BMW
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Amgen Inc
SWB:AMG
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Monopar Therapeutics Inc
F:1IY0
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DaVita Inc
XBER:TRL
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Chandra Asri Petrochemical Tbk PT
IDX:TPIA
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British American Tobacco PLC
OTC:BTAFF
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Cigna Corp
XHAM:CGN
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Bayerische Motoren Werke AG
XETRA:BMW
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Manulife Financial Corp
XBER:MLU
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State Bank of India
OTC:SBKFF
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Kawasaki Kisen Kaisha Ltd
OTC:KAIKY
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Palo Alto Networks Inc
TASE:CYBR
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Kuehne und Nagel International AG
OTC:KHNGF
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Shoprite Holdings Ltd
SWB:HY7
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First Citizens BancShares Inc (Delaware)
F:FC6A
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US Foods Holding Corp
NYSE:USFD
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Christian Dior SE
SWB:DIO
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Philip Morris International Inc
DUS:4I1
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Lockheed Martin Corp
F:LOM
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Discount Rate
OBT Cost of Equity
Discount Rate
OBT'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 OBT's discount rate?
OBT'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 OBT 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 OBT
