Primerica Inc
SWB:PI7
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Primerica Inc
SWB:PI7
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HALEON PLC
OTC:HLNCF
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International Consolidated Airlines Group SA
DUS:INR
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Kering SA
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GAIL (India) Ltd
BSE:532155
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Mr DIY Group (M) Bhd
OTC:MDIYF
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Engie SA
XHAM:GZF
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Axis Bank Ltd
BSE:532215
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First National Corp
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Emperador Inc
XPHS:EMI
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Bank of Montreal
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ENEOS Holdings Inc
TSE:5020
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Baker Hughes Co
SIX:BHI
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eBay Inc
SWB:EBA
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Deutsche Post AG
LSE:0H3Q
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Wal Mart de Mexico SAB de CV
BMV:WALMEX
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H & R Block Inc
SWB:HRB
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Discount Rate
PI7 Cost of Equity
Discount Rate
PI7's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7.6%. The Beta, indicating the stock's volatility relative to the market, is 0.76, while the current Risk-Free Rate, based on government bond yields, is 4.42%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is PI7's discount rate?
PI7's current Cost of Equity is 7.6%.
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 PI7 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
PI7
