CHEP.ME WACC - Weighted Average Cost of Capital

The WACC of Chelyabinskiy Truboprokatnyi Zavod PAO (CHEP.ME) is 16.6%.

The Cost of Equity of Chelyabinskiy Truboprokatnyi Zavod PAO (CHEP.ME) is 21.10%.

The Cost of Debt of Chelyabinskiy Truboprokatnyi Zavod PAO (CHEP.ME) is 14.20%.

	Range	Selected
Cost of equity	20.00% - 22.20%	21.10%
Tax rate	27.70% - 31.00%	29.35%
Cost of debt	9.00% - 19.40%	14.20%
WACC	14.6% - 18.6%	16.6%

WACC

CHEP.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.36	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.00%	22.20%

Tax rate	27.70%	31.00%
Debt/Equity ratio	0.67	0.67
Cost of debt	9.00%	19.40%

After-tax WACC	14.6%	18.6%


Selected WACC	16.6%

CHEP.ME's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for CHEP.ME:

cost_of_equity (21.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.36) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.