The WACC of Zvezda PAO (ZVEZ.ME) is 12.6%.
| Range | Selected | |
| Cost of equity | 17.10% - 19.70% | 18.40% |
| Tax rate | 22.50% - 22.60% | 22.55% |
| Cost of debt | 4.00% - 12.70% | 8.35% |
| WACC | 10.3% - 14.9% | 12.6% |
| Category | Low | High |
| Long-term bond rate | 11.6% | 12.1% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.8 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.10% | 19.70% |
| Tax rate | 22.50% | 22.60% |
| Debt/Equity ratio | 0.95 | 0.95 |
| Cost of debt | 4.00% | 12.70% |
| After-tax WACC | 10.3% | 14.9% |
| Selected WACC | 12.6% | |
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 ZVEZ.ME:
cost_of_equity (18.40%) = risk_free_rate (11.85%) + equity_risk_premium (7.40%) * adjusted_beta (0.8) + 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.