VSMO.ME WACC - Weighted Average Cost of Capital

The WACC of Korporatsiya VSMPO-AVISMA PAO (VSMO.ME) is 21.9%.

The Cost of Equity of Korporatsiya VSMPO-AVISMA PAO (VSMO.ME) is 24.35%.

The Cost of Debt of Korporatsiya VSMPO-AVISMA PAO (VSMO.ME) is 13.75%.

	Range	Selected
Cost of equity	22.70% - 26.00%	24.35%
Tax rate	15.20% - 20.00%	17.60%
Cost of debt	6.50% - 21.00%	13.75%
WACC	19.6% - 24.3%	21.9%

WACC

VSMO.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.59	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.70%	26.00%

Tax rate	15.20%	20.00%
Debt/Equity ratio	0.23	0.23
Cost of debt	6.50%	21.00%

After-tax WACC	19.6%	24.3%


Selected WACC	21.9%

VSMO.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 VSMO.ME:

cost_of_equity (24.35%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.59) + 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.