SVAV.ME WACC - Weighted Average Cost of Capital
The WACC of Sollers PAO (SVAV.ME) is 20.7%.
| Range | Selected | |
| Cost of equity | 27.0% - 31.2% | 29.1% |
| Tax rate | 22.3% - 26.4% | 24.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 19.3% - 22.0% | 20.7% |
| Category | Low | High |
| Long-term bond rate | 15.8% | 16.3% |
| Equity market risk premium | 11.7% | 12.7% |
| Adjusted beta | 0.96 | 1.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 27.0% | 31.2% |
| Tax rate | 22.3% | 26.4% |
| Debt/Equity ratio | 0.5 | 0.5 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 19.3% | 22.0% |
| Selected WACC | 20.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SVAV.ME | Sollers PAO | 0.5 | -0.32 | -0.23 |
| 000572.SZ | Haima Automobile Co.,Ltd | 0.23 | 1.25 | 1.06 |
| 000980.SZ | Zotye Automobile Co Ltd | 0.2 | 2.09 | 1.83 |
| 1122.HK | Qingling Motors Co Ltd | 0.01 | 0.72 | 0.71 |
| 2204.TW | China Motor Corp | 0.11 | 0.82 | 0.75 |
| 600303.SS | Liaoning SG Automotive Group Co Ltd | 0.33 | 0.82 | 0.66 |
| 600609.SS | Shenyang Jinbei Automotive Co Ltd | 0.03 | 1.65 | 1.62 |
| ATL.AX | Apollo Tourism & Leisure Ltd | 1.27 | 2.09 | 1.08 |
| GAZA.ME | Gaz PAO | 3.3 | -0.02 | -0.01 |
| ZILL.ME | AMO ZIL PAO | 1.69 | 0.23 | 0.1 |
| Low | High | |
| Unlevered beta | 0.69 | 0.88 |
| Relevered beta | 0.94 | 1.21 |
| Adjusted relevered beta | 0.96 | 1.14 |
SVAV.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 SVAV.ME:
cost_of_equity (29.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.96) + 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.