VSMO.ME WACC - Weighted Average Cost of Capital
The WACC of Korporatsiya VSMPO-AVISMA PAO (VSMO.ME) is 22.1%.
| Range | Selected | |
| Cost of equity | 22.9% - 26.1% | 24.5% |
| Tax rate | 15.2% - 20.0% | 17.6% |
| Cost of debt | 6.5% - 21.0% | 13.75% |
| WACC | 19.7% - 24.4% | 22.1% |
| Category | Low | High |
| Long-term bond rate | 15.8% | 16.3% |
| Equity market risk premium | 11.7% | 12.7% |
| Adjusted beta | 0.61 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 22.9% | 26.1% |
| Tax rate | 15.2% | 20.0% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 6.5% | 21.0% |
| After-tax WACC | 19.7% | 24.4% |
| Selected WACC | 22.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VSMO.ME | Korporatsiya VSMPO-AVISMA PAO | 0.23 | 0.23 | 0.19 |
| 000657.SZ | China Tungsten and Hightech Materials Co Ltd | 0.26 | 1.26 | 1.04 |
| 012800.KS | Daechang Co Ltd | 3.37 | 1.7 | 0.45 |
| 1091.HK | South Manganese Investment Ltd | 3.49 | 1.9 | 0.49 |
| 600456.SS | BaoJi Titanium Industry Co Ltd | 0.24 | 1.02 | 0.85 |
| 601137.SS | Ningbo Boway Alloy Material Co Ltd | 0.42 | 1.19 | 0.89 |
| CHEP.ME | Chelyabinskiy Truboprokatnyi Zavod PAO | 0.67 | 0.85 | 0.55 |
| CHMK.ME | Chelyabinskiy Metallurgicheskiy Kombinat PAO | 5.74 | 0.04 | 0.01 |
| MGNZ.ME | Solikamskiy Magniyevyi Zavod OAO | 0.33 | 0.04 | 0.03 |
| S20.SI | Straits Trading Company Ltd | 2.73 | 0.61 | 0.19 |
| Low | High | |
| Unlevered beta | 0.35 | 0.51 |
| Relevered beta | 0.42 | 0.61 |
| Adjusted relevered beta | 0.61 | 0.74 |
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 (24.50%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.61) + 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.