HSBC Holdings PLC
SWB:HBC2
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
H
|
HSBC Holdings PLC
SWB:HBC2
|
UK |
|
M
|
MetLife Inc
DUS:MWZ
|
US |
|
Meesho Ltd
NSE:MEESHO
|
IN |
|
I
|
Ivanhoe Mines Ltd
OTC:IVPAF
|
CA |
|
Hitachi Ltd
F:HIA1
|
JP |
|
Aya Gold & Silver Inc
TSX:AYA
|
CA |
|
G
|
Grindrod Ltd
XBER:G8H1
|
ZA |
|
Summit Therapeutics Inc
NASDAQ:SMMT
|
US |
|
Swiss Re AG
SIX:SREN
|
CH |
|
Malin Corporation PLC
OTC:MLLNF
|
IE |
|
Mediaalpha Inc
NYSE:MAX
|
US |
|
W
|
Wilmar International Ltd
XHAM:RTHA
|
SG |
|
Tesla Inc
MIL:1TSLA
|
US |
|
S
|
Siemens AG
SWB:SIE
|
DE |
|
F
|
Freeport-McMoRan Inc
LSE:0R2O
|
US |
|
Lufax Holding Ltd
NYSE:LU
|
CN |
|
General de Alquiler de Maquinaria SA
LSE:0RTJ
|
ES |
|
E
|
ESGL Holdings Ltd
NASDAQ:ESGL
|
SG |
|
I
|
Ionis Pharmaceuticals Inc
SWB:ISI
|
US |
|
Gold Fields Ltd
OTC:GFIOF
|
ZA |
|
L
|
Leggett & Platt Inc
LSE:0JTT
|
US |
|
Kite Realty Group Trust
NYSE:KRG
|
US |
|
R
|
Reliance Steel & Aluminum Co
F:RS6
|
US |
|
Beijing Enterprises Urban Resources Group Ltd
HKEX:3718
|
CN |
Discount Rate
HBC2 Cost of Equity
Discount Rate
HBC2'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 HBC2's discount rate?
HBC2'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 HBC2 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
HBC2
