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ИД «Финансы и кредит»






Finance and Credit

Calculation of the discount rate for the Russian market in present-day conditions

Vol. 29, Iss. 4, APRIL 2023

Received: 26 January 2023

Received in revised form: 13 February 2023

Accepted: 27 February 2023

Available online: 27 April 2023


JEL Classification: C82, G31, O16

Pages: 795–839


Dmitrii S. VORONOV UMMC Technical University, Verkhnyaya Pyshma, Sverdlovsk Oblast, Russian Federation


Lyudmila A. RAMENSKAYA Ural State University of Economics (USUE), Yekaterinburg, Russian Federation


Ruslan A. DOLZHENKO Ural State University of Economics (USUE), Yekaterinburg, Russian Federation


Subject. This article focuses on the consideration of the algorithm and methodological approaches to assessing the cost of capital.
Objectives. The article aims to develop a practical algorithm for assessing the cost of capital and calculating the discount rate based on ruble risk-free assets and Russian financial statistics.
Methods. For the study, we used the Weighted Average Capital Cost (WACC) and Capital Asset Pricing (CAPM) models.
Results. The article offers a tested step-by-step algorithm for calculating the cost of capital and risk premium loading to it using domestic financial statistics. It also justifies the need to take non-systematic risks out and beyond the weighted average capital cost and offers a deterministic mechanism for their assessment.
Conclusions and Relevance. The author-developed algorithm for estimating the cost of capital, as well as methodological recommendations for its use, can be used by domestic investors to make the necessary decisions, as well as by the financial services of Russian companies to build the economic policy of the company. Using the proposed approach may help obtain a more adequate assessment of the cost of capital of Russian companies for domestic investors, thereby improving their competitiveness.

Keywords: risk-free asset, risk assessment, Capital Asset Pricing Model (CAPM), Weighed Average Capital Cost (WACC), discount rate


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