Mercury General Corp
XMUN:MCG
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
M
|
Mercury General Corp
XMUN:MCG
|
US |
|
FirstEnergy Corp
NYSE:FE
|
US |
|
C
|
China Merchants Bank Co Ltd
OTC:CIHKY
|
CN |
|
W
|
Williams Companies Inc
XBER:WMB
|
US |
|
F
|
Federal National Mortgage Association
DUS:FNM
|
US |
|
Komatsu Ltd
OTC:KMTUF
|
JP |
|
C
|
Carrefour SA
LSE:0NPH
|
FR |
|
Beauty Health Co
NASDAQ:SKIN
|
US |
|
Sirius Real Estate Ltd
F:EYI
|
GG |
|
Hotai Motor Co Ltd
TWSE:2207
|
TW |
|
A
|
APA Group
SWB:PJZ
|
AU |
|
Intel Corp
NASDAQ:INTC
|
US |
|
Inventiva SA
F:6IVA
|
FR |
|
S
|
Subsea 7 SA
SWB:SOC
|
UK |
|
B
|
Broadcom Inc
DUS:1YD
|
US |
|
Basf Se
MIL:1BAS
|
DE |
|
Geberit AG
F:GBRA
|
CH |
|
B
|
Brunswick Corp
SWB:BWI
|
US |
|
B
|
Banco Bilbao Vizcaya Argentaria SA
DUS:BOY
|
ES |
|
C
|
China Mobile Ltd
SWB:CTM
|
CN |
|
E
|
Edwards Lifesciences Corp
F:EWL
|
US |
|
C
|
Chipotle Mexican Grill Inc
XMUN:C9F
|
US |
|
C
|
Cbrain A/S
XBER:C6F
|
DK |
|
Kawasaki Heavy Industries Ltd
OTC:KWHIY
|
JP |
Discount Rate
MCG Cost of Equity
Discount Rate
MCG'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 MCG's discount rate?
MCG'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 MCG 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
MCG
