CHKZ.ME WACC - Weighted Average Cost of Capital

The WACC of Chelyabinskiy kuznechno-pressovyi zavod PAO (CHKZ.ME) is 10.4%.

The Cost of Equity of Chelyabinskiy kuznechno-pressovyi zavod PAO (CHKZ.ME) is 20.05%.

The Cost of Debt of Chelyabinskiy kuznechno-pressovyi zavod PAO (CHKZ.ME) is 5.50%.

	Range	Selected
Cost of equity	18.90% - 21.20%	20.05%
Tax rate	32.90% - 33.40%	33.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	9.3% - 11.4%	10.4%

WACC

CHKZ.ME WACC calculation

Category	Low	High

Long-term bond rate	11.6%	12.1%
Equity market risk premium	6.9%	7.9%
Adjusted beta	1.05	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.90%	21.20%

Tax rate	32.90%	33.40%
Debt/Equity ratio	1.44	1.44
Cost of debt	4.00%	7.00%

After-tax WACC	9.3%	11.4%


Selected WACC	10.4%

CHKZ.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 CHKZ.ME:

cost_of_equity (20.05%) = risk_free_rate (11.85%) + equity_risk_premium (7.40%) * adjusted_beta (1.05) + 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.