The WACC of Chelyabinskiy Truboprokatnyi Zavod PAO (CHEP.ME) is 16.7%.
Range | Selected | |
Cost of equity | 20.0% - 22.5% | 21.25% |
Tax rate | 27.7% - 31.0% | 29.35% |
Cost of debt | 9.0% - 19.4% | 14.2% |
WACC | 14.6% - 18.9% | 16.7% |
Category | Low | High |
Long-term bond rate | 15.8% | 16.3% |
Equity market risk premium | 11.7% | 12.7% |
Adjusted beta | 0.36 | 0.45 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 20.0% | 22.5% |
Tax rate | 27.7% | 31.0% |
Debt/Equity ratio | 0.67 | 0.67 |
Cost of debt | 9.0% | 19.4% |
After-tax WACC | 14.6% | 18.9% |
Selected WACC | 16.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CHEP.ME | Chelyabinskiy Truboprokatnyi Zavod PAO | 0.67 | 0.85 | 0.57 |
2006.TW | Tung Ho Steel Enterprise Corp | 0.25 | 0.27 | 0.23 |
5444.T | Yamato Kogyo Co Ltd | 0 | 0.96 | 0.96 |
AMEZ.ME | Ashinskiy Metzavod PAO | 0.04 | 0.5 | 0.49 |
CHMK.ME | Chelyabinskiy Metallurgicheskiy Kombinat PAO | 5.74 | 0.04 | 0.01 |
IGST.ME | Izhstal' PAO | 0.52 | -0.82 | -0.6 |
MAGN.ME | Magnitogorskiy Metallurgicheskiy Kombinat PAO | 6.32 | 0.29 | 0.05 |
NLMK.ME | Novolipetsk Steel PAO | 4.25 | 0.2 | 0.05 |
PRFN.ME | ChZPSN-Profnastil PAO | 0.18 | -0.09 | -0.08 |
URKZ.ME | Ural'skaya Kuznitsa PAO | 0.1 | -0.4 | -0.37 |
Low | High | |
Unlevered beta | 0.03 | 0.12 |
Relevered beta | 0.04 | 0.18 |
Adjusted relevered beta | 0.36 | 0.45 |
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.