Canadian Imperial Bank of Commerce
XMUN:CAI
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
C
|
Canadian Imperial Bank of Commerce
XMUN:CAI
|
CA |
|
Sibanye Stillwater Ltd
LSE:0A56
|
ZA |
|
Roche Holding AG
LSE:0TDF
|
CH |
|
Yara International ASA
F:IU20
|
NO |
|
Prosegur Compania de Seguridad SA
F:PRHA
|
ES |
|
Woolworths Group Ltd
ASX:WOW
|
AU |
|
Assicurazioni Generali SpA
OTC:ARZGY
|
IT |
|
M
|
Masco Corp
DUS:MSQ
|
US |
|
E
|
Eli Lilly and Co
DUS:LLY
|
US |
|
Standard Chartered PLC
LSE:STAN
|
UK |
|
N
|
Nucor Corp
F:NUO
|
US |
|
A
|
AIA Group Ltd
OTC:AAGIY
|
HK |
|
E
|
EQT Corp
F:EQ6
|
US |
|
F
|
Fujitsu Ltd
OTC:FJTSF
|
JP |
|
N
|
NEC Corp
SWB:NEC1
|
JP |
|
Stellantis NV
F:8TI
|
NL |
|
Nintendo Co Ltd
TSE:7974
|
JP |
|
B
|
Barclays PLC
DUS:BCY
|
UK |
|
C
|
Cognizant Technology Solutions Corp
DUS:COZ
|
US |
|
Unicaja Banco SA
MAD:UNI
|
ES |
|
A
|
Analog Devices Inc
F:ANL
|
US |
|
G
|
Green Brick Partners Inc
NYSE:GRBK
|
US |
|
W
|
Wheaton Precious Metals Corp
DUS:SII
|
CA |
|
H
|
Hartford Insurance Group Inc
DUS:HFF
|
US |
Discount Rate
CAI Cost of Equity
Discount Rate
CAI's Cost of Equity, calculated using the formula Risk-Free Rate + Beta x ERP, stands at 7%. The Beta, indicating the stock's volatility relative to the market, is 0.68, while the current Risk-Free Rate, based on government bond yields, is 4%, and the ERP, measuring the extra return over the risk-free rate required by investors, is 4.3%.
What is CAI's discount rate?
CAI's current Cost of Equity is 7%.
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 CAI 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
CAI