BNP Paribas SA
XHAM:BNP
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
B
|
BNP Paribas SA
XHAM:BNP
|
FR |
|
N
|
Netflix Inc
XHAM:NFC
|
US |
|
Shimamura Co Ltd
OTC:SHAOF
|
JP |
|
B
|
Boston Scientific Corp
LSE:0HOY
|
US |
|
A
|
Aluminum Corporation of China Ltd
SGX:K3HD
|
CN |
|
E
|
Ecolab Inc
LSE:0IFA
|
US |
|
Arm Holdings PLC
NASDAQ:ARM
|
UK |
|
M
|
Medtronic PLC
XBER:2M6
|
IE |
|
LK Technology Holdings Ltd
HKEX:558
|
HK |
|
C
|
CNFinance Holdings Ltd
NYSE:CNF
|
CN |
|
F
|
Forus SA
SGO:FORUS
|
CL |
|
M
|
Magna International Inc
BMV:MGAN
|
CA |
|
J
|
Johnson & Johnson
XHAM:JNJ
|
US |
|
Chemometec A/S
CSE:CHEMM
|
DK |
|
H
|
Home Depot Inc
SGO:HD
|
US |
|
Carlisle Companies Inc
NYSE:CSL
|
US |
|
T
|
Textron Inc
LSE:0LF0
|
US |
|
S
|
Swiss Re AG
XHAM:SR9
|
CH |
|
Unity Software Inc
NYSE:U
|
US |
|
C
|
Cintas Corp
XBER:CIT
|
US |
|
S
|
SPAR Group Ltd
XBER:S8A
|
ZA |
Discount Rate
BNP Cost of Equity
Discount Rate
BNP's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 6.87%. The Beta, indicating the stock's volatility relative to the market, is 0.74, while the current Risk-Free Rate, based on government bond yields, is 3.78%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.18%.
What is BNP's discount rate?
BNP's current Cost of Equity is 6.87%.
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 BNP 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
BNP
