Powszechny Zaklad Ubezpieczen SA
WSE:PZU
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P
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Powszechny Zaklad Ubezpieczen SA
WSE:PZU
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PL |
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B
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Broadridge Financial Solutions Inc
F:5B9
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US |
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F
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Flughafen Wien AG
SWB:FLW1
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AT |
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D
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Domino's Pizza Enterprises Ltd
OTC:DPZUF
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AU |
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Tallink Grupp AS
F:T5N
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EE |
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S
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Sixt SE
XHAN:SIX2
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DE |
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Inpex Corp
TSE:1605
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JP |
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A
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Aterian PLC
LSE:ATN
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UK |
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N
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NexgenRx Inc
OTC:NEGXF
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CA |
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SMC Corp
TSE:6273
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JP |
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Just Eat Takeaway.com NV
OTC:JTKWY
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NL |
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E
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Enphase Energy Inc
F:E0P
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US |
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C
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CITIC Ltd
XMUN:CPF
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CN |
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E
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Exxonmobil Holdings Corp
F:7DZ
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US |
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M
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Mattel Inc
DUS:MTT
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US |
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Palantir Technologies Inc
NASDAQ:PLTR
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US |
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H
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Hochtief AG
XMUN:HOT
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DE |
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S
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Securitas AB
XMUN:S7MB
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SE |
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A
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AMETEK Inc
F:AK1
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US |
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A
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American Electric Power Company Inc
XMUN:AEP
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US |
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G
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General Dynamics Corp
DUS:GDX
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US |
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C
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Carlisle Companies Inc
F:CLE
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US |
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B
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Bristol-Myers Squibb Co
DUS:BRM
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US |
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A
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American Express Co
F:AEC1
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US |
Discount Rate
PZU Cost of Equity
Discount Rate
PZU's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 8.86%. The Beta, indicating the stock's volatility relative to the market, is 0.7, while the current Risk-Free Rate, based on government bond yields, is 5.85%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is PZU's discount rate?
PZU's current Cost of Equity is 8.86%.
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 PZU 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 PZU