Q & A › Category: Stocks › How to set a standard required return rate?
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Nicholas Chew asked 8 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?

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KCLau Staff answered 8 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.