SoFi Technologies Inc
NASDAQ:SOFI
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
SoFi Technologies Inc
NASDAQ:SOFI
|
US |
|
Repco Home Finance Ltd
NSE:REPCOHOME
|
IN |
|
Tokyo Century Corp
TSE:8439
|
JP |
|
Relay Therapeutics Inc
NASDAQ:RLAY
|
US |
|
Reckitt Benckiser Group PLC
LSE:RKT
|
UK |
|
International Paper Co
NYSE:IP
|
US |
|
Unilever PLC
LSE:ULVR
|
UK |
|
M
|
M-Tron Industries Inc
AMEX:MPTI
|
US |
|
Sequana Medical NV
XBRU:SEQUA
|
BE |
|
Smoore International Holdings Ltd
HKEX:6969
|
CN |
|
B
|
BROOKFIELD ASSET MANAGEMENT LTD
TSX:BAM
|
CA |
|
Companhia Energetica de Minas Gerais CEMIG
NYSE:CIG.C
|
BR |
|
M
|
Mitsubishi Estate Logistics REIT Investment Corp
TSE:3481
|
JP |
|
A
|
Amrize AG
SIX:AMRZ
|
US |
|
Cognizant Technology Solutions Corp
NASDAQ:CTSH
|
US |
|
E
|
Equity LifeStyle Properties Inc
NYSE:ELS
|
US |
|
Macrotech Developers Ltd
NSE:LODHA
|
IN |
|
Investor AB
STO:INVE B
|
SE |
|
Tyra Biosciences Inc
NASDAQ:TYRA
|
US |
|
Tenaris SA
MIL:TEN
|
LU |
|
Sysco Corp
NYSE:SYY
|
US |
|
Amada Co Ltd
TSE:6113
|
JP |
Discount Rate
SOFI Cost of Equity
Discount Rate
SOFI's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.95%. The Beta, indicating the stock's volatility relative to the market, is 0.84, 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 SOFI's discount rate?
SOFI's current Cost of Equity is 7.95%.
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 SOFI 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
SOFI
