VSMO.ME WACC - Weighted Average Cost of Capital

The WACC of Korporatsiya VSMPO-AVISMA PAO (VSMO.ME) is 22.7%.

The Cost of Equity of Korporatsiya VSMPO-AVISMA PAO (VSMO.ME) is 24.70%.

The Cost of Debt of Korporatsiya VSMPO-AVISMA PAO (VSMO.ME) is 15.55%.

	Range	Selected
Cost of equity	22.90% - 26.50%	24.70%
Tax rate	18.10% - 23.20%	20.65%
Cost of debt	6.80% - 24.30%	15.55%
WACC	20.1% - 25.3%	22.7%

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	0.61	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.90%	26.50%

Tax rate	18.10%	23.20%
Debt/Equity ratio	0.19	0.19
Cost of debt	6.80%	24.30%

After-tax WACC	20.1%	25.3%


Selected WACC	22.7%

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 (24.70%) = 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.