Q & ACategory: StocksHow to set a standard required return rate?
Nicholas Chew asked 6 years ago

Hi, I’m Nicholas, currently a student.
I just started to bought certain stocks few months ago, I set my required return as 10% to get an intrinsic value. Is that right? Or… It depends on the industry?

1 Answers
KCLau Staff answered 6 years ago

That depends on your confidence in the company.
Say a very solid company with good track record for many years, and the product/service/revenue is very stable, then you will be more comfortable to set a lower required return rate.