GCHE.ME WACC - Weighted Average Cost of Capital

The WACC of Gruppa Cherkizovo PAO (GCHE.ME) is 21.3%.

The Cost of Equity of Gruppa Cherkizovo PAO (GCHE.ME) is 24.10%.

The Cost of Debt of Gruppa Cherkizovo PAO (GCHE.ME) is 14.80%.

	Range	Selected
Cost of equity	22.70% - 25.50%	24.10%
Tax rate	1.50% - 2.60%	2.05%
Cost of debt	10.70% - 18.90%	14.80%
WACC	19.2% - 23.4%	21.3%

WACC

GCHE.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.6	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.70%	25.50%

Tax rate	1.50%	2.60%
Debt/Equity ratio	0.41	0.41
Cost of debt	10.70%	18.90%

After-tax WACC	19.2%	23.4%


Selected WACC	21.3%

GCHE.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 GCHE.ME:

cost_of_equity (24.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.6) + 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.