DZRD.ME WACC - Weighted Average Cost of Capital

The WACC of Donskoy Zavod Radiodetaley OAO (DZRD.ME) is 19.2%.

The Cost of Equity of Donskoy Zavod Radiodetaley OAO (DZRD.ME) is 21.00%.

The Cost of Debt of Donskoy Zavod Radiodetaley OAO (DZRD.ME) is 18.40%.

	Range	Selected
Cost of equity	20.10% - 21.90%	21.00%
Tax rate	31.70% - 37.30%	34.50%
Cost of debt	4.00% - 32.80%	18.40%
WACC	16.8% - 21.6%	19.2%

WACC

DZRD.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.37	0.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.10%	21.90%

Tax rate	31.70%	37.30%
Debt/Equity ratio	0.24	0.24
Cost of debt	4.00%	32.80%

After-tax WACC	16.8%	21.6%


Selected WACC	19.2%

DZRD.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 DZRD.ME:

cost_of_equity (21.00%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.37) + 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.