VLHZ.ME WACC - Weighted Average Cost of Capital

The WACC of Vladimirskiy Khimicheskiy Zavod PAO (VLHZ.ME) is 22.4%.

The Cost of Equity of Vladimirskiy Khimicheskiy Zavod PAO (VLHZ.ME) is 24.50%.

The Cost of Debt of Vladimirskiy Khimicheskiy Zavod PAO (VLHZ.ME) is 19.25%.

	Range	Selected
Cost of equity	21.80% - 27.20%	24.50%
Tax rate	21.70% - 22.20%	21.95%
Cost of debt	10.90% - 27.60%	19.25%
WACC	18.9% - 26.0%	22.4%

WACC

VLHZ.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.52	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.80%	27.20%

Tax rate	21.70%	22.20%
Debt/Equity ratio	0.28	0.28
Cost of debt	10.90%	27.60%

After-tax WACC	18.9%	26.0%


Selected WACC	22.4%

VLHZ.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 VLHZ.ME:

cost_of_equity (24.50%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.52) + 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.