Cigna Corp
NYSE:CI
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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Cigna Corp
NYSE:CI
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US |
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Intred SpA
F:M7P
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IT |
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CITIC Securities Co Ltd
SSE:600030
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CN |
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U
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UBE Corp
OTC:UBEOF
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JP |
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R
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Round One Corp
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Endesa SA
XETRA:ENA
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ES |
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Marvell Technology Group Ltd
NASDAQ:MRVL
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BKW AG
F:B9W
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CH |
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DIRTT Environmental Solutions Ltd
OTC:DRTTF
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CA |
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Keppel REIT
SGX:K71U
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A
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Anglo American PLC
OTC:AAUKF
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UK |
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M
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Mincon Group PLC
SWB:MIO
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IE |
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I
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Informa PLC
F:IEA
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UK |
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N
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NRG Energy Inc
F:NRA
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US |
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I
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Ingersoll Rand Inc
SWB:5GD
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C
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Cadence Design Systems Inc
XETRA:CDS
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China Resources Mixc Lifestyle Services Ltd
OTC:CRMLY
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CN |
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Siemens Healthineers AG
F:SHL
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DE |
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K
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KDDI Corp
SWB:DIP
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JP |
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Aya Gold & Silver Inc
TSX:AYA
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CA |
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A
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Asahi Group Holdings Ltd
SWB:ABW
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JP |
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A
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Aramark
F:0AK
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D
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Dermapharm Holding SE
XMUN:DMP
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DE |
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V
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Vodafone Group PLC
F:VODI
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UK |
Discount Rate
CI Cost of Equity
Discount Rate
CI's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.24%. The Beta, indicating the stock's volatility relative to the market, is 0.82, 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%.
What is CI's discount rate?
CI's current Cost of Equity is 8.24%.
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 CI 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
CI