Cost of Equity Calculator
Use our quick and handy calculator to calculate the Cost of Equity for your stock. This calculator uses the Capital Asset Pricing Model (CAPM) as the framework, estimating it as:
![\[k_e = r_f + \beta (E[r_m] - r_f)\]](https://www.ferventlearning.com/wp-content/ql-cache/quicklatex.com-21b9b02db0a0a15c9f51768584caba6f_l3.svg?495a33&495a33 "Rendered by QuickLaTeX.com")
Handy Hacks
To get a risk-free rate estimate, see the yields on treasuries here.
You can obtain the Beta for your stock from Yahoo! Finance, or learn how to calculate beta and then estimate it on your own.
For the expected market return, you can use the average annual return on a stock market index like the S&P500, FTSE100, NIKKEI, etc.