Sun Life Financial Inc
XBER:LIE
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
S
|
Sun Life Financial Inc
XBER:LIE
|
CA |
|
S
|
Service Corporation International
SWB:SVC
|
US |
|
L
|
Las Vegas Sands Corp
DUS:LCR
|
US |
|
3
|
3M Co
XMUN:MMM
|
US |
|
Marvell Technology Group Ltd
NASDAQ:MRVL
|
US |
|
Aspen Pharmacare Holdings Ltd
F:LDZU
|
ZA |
|
Assa Abloy AB
STO:ASSA B
|
SE |
|
G
|
General Mills Inc
XETRA:GRM
|
US |
|
T
|
Teradyne Inc
LSE:0LEF
|
US |
|
ESR-REIT
SGX:9A4U
|
SG |
|
M
|
Murray & Roberts Holdings Ltd
XBER:LDYA
|
ZA |
|
China Minsheng Banking Corp Ltd
SSE:600016
|
CN |
|
B
|
Bank of New York Mellon Corp
XBER:BN9
|
US |
|
G
|
Gerdau SA
BMV:GGBN
|
BR |
|
Ferrari NV
NYSE:RACE
|
IT |
|
B
|
BCE Inc
SWB:BCE1
|
CA |
|
Iriso Electronics Co Ltd
TSE:6908
|
JP |
|
Q
|
Quanta Services Inc
LSE:0KSR
|
US |
Discount Rate
LIE Cost of Equity
Discount Rate
LIE's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.79%. 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 3.61%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is LIE's discount rate?
LIE's current Cost of Equity is 6.79%.
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 LIE 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
LIE
