CHEP.ME
Chelyabinskiy Truboprokatnyi Zavod PAO
Price:  
314 
RUB
Volume:  
2,800
Russian Federation | Metals & Mining

CHEP.ME WACC - Weighted Average Cost of Capital

The WACC of Chelyabinskiy Truboprokatnyi Zavod PAO (CHEP.ME) is 16.7%.

The Cost of Equity of Chelyabinskiy Truboprokatnyi Zavod PAO (CHEP.ME) is 21.25%.
The Cost of Debt of Chelyabinskiy Truboprokatnyi Zavod PAO (CHEP.ME) is 14.2%.

RangeSelected
Cost of equity20.0% - 22.5%21.25%
Tax rate27.7% - 31.0%29.35%
Cost of debt9.0% - 19.4%14.2%
WACC14.6% - 18.9%16.7%
WACC

CHEP.ME WACC calculation

CategoryLowHigh
Long-term bond rate15.8%16.3%
Equity market risk premium11.7%12.7%
Adjusted beta0.360.45
Additional risk adjustments0.0%0.5%
Cost of equity20.0%22.5%
Tax rate27.7%31.0%
Debt/Equity ratio
0.670.67
Cost of debt9.0%19.4%
After-tax WACC14.6%18.9%
Selected WACC16.7%

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 (21.25%) = 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.