Open AccessDiscount rate and return on equity of the largest companies in the Russian mineral resource complex: comparative analysis
Author(s) -
Vladimir Podkorytov,
Mochalova Liudmila
Publication year - 2020
Publication title -
izvestiâ vysših učebnyh zavedenij. gornyj žurnal
Language(s) - English
Resource type - Journals
eISSN - 2686-9853
pISSN - 0536-1028
DOI - 10.21440/0536-1028-2020-8-71-80
Subject(s) - capital asset pricing model , rate of return , equity (law) , economics , cost of equity , return on equity , financial economics , econometrics , risk–return spectrum , equity ratio , business , cost of capital , finance , microeconomics , profit (economics) , portfolio , political science , stock exchange , law
. The article is devoted to a comparative analysis of discount rates and return on equity indicators of the largest companies in the Russian mineral resource complex. Research aim is to test the following hypothesis: in the conditions of stable operation of the company, the return on equity is higher than the discount rate. Methodology. Discount rates are calculated based on statistical data of the US securities market using the CAPM (Capital Asset Pricing Model). The return on equity is calculated based on the company's consolidated financial statements for the period from 2006 to 2019. ISSN 0536-1028 «Известия вузов. Горный журнал», № 8, 2020 79 Research result. The results of calculations confirm the hypothesis formulated by the authors: as practice shows, it is true that stable companies in the mineral resource complex of Russia (with rare exceptions) have a return on equity higher than the discount rate. Conclusions. The authors believe that when applying a particular method of calculating the discount rate for a particular company, the upper limit of the range of its possible values should be used as the return on equity of this company. The prospect of further research is seen in determining the lower limit of the range of possible values of the discount rate.