The WACC of Chelyabinskiy Metallurgicheskiy Kombinat PAO (CHMK.ME) is 10.0%.
| Range | Selected | |
| Cost of equity | 32.30% - 57.50% | 44.90% |
| Tax rate | 22.10% - 22.30% | 22.20% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 8.1% - 11.8% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 15.8% | 16.3% |
| Equity market risk premium | 11.7% | 12.7% |
| Adjusted beta | 1.41 | 3.21 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 32.30% | 57.50% |
| Tax rate | 22.10% | 22.30% |
| Debt/Equity ratio | 5.74 | 5.74 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 8.1% | 11.8% |
| Selected WACC | 10.0% | |
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 CHMK.ME:
cost_of_equity (44.90%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (1.41) + 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.