Analysis of Methods for Calculating the Weighted Average Cost of Capital of a Company on the Example of an Industrial Enterprise

DOI

10.2991/aebmr.k.200312.399How to use a DOI?

Abstract

The weighted average cost of capital (WACC) is used to estimate the profitability of the company’s capital, the rate of return of the investment project and business. Within the framework of the article, an analysis of the methods for calculating the weighted average cost of capital of a company was presented. It was found that the existing methods are not suitable for all Russian companies. In this regard, it was proposed to use two versions of the capital asset pricing model (CAPM): with the calculation of the beta coefficient by comparing the dynamics of ROE and the RTS index, as well as the dynamics of ROE and prices for raw materials or produced products. Models were evaluated on the example of PJSC Koks, which is one of the largest producers and exporters of metallurgical coke in Russia. During the analysis, it was concluded that it is advisable to use both WACC calculation models.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - E A Dolbnya
AU  - M K Vasilyeva
AU  - A Y Lyukina
PY  - 2020
DA  - 2020/03/17
TI  - Analysis of Methods for Calculating the Weighted Average Cost of Capital of a Company on the Example of an Industrial Enterprise
BT  - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020)
PB  - Atlantis Press
SP  - 2803
EP  - 2807
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200312.399
DO  - 10.2991/aebmr.k.200312.399
ID  - Dolbnya2020
ER  -