The current state of the problems of assessing the value of the corporation’s equity and directions for improving the CAPM model

The variety of models for assessing the value of equity, which are widely used in the practice of foreign corporations abroad, do not allow us to correctly assess its value for corporate business and firms operating in the modern Russian economy. The authors consider the main approaches to assessing the equity capital of a Russian enterprise of corporate ownership, make a reasonable choice in favor of the MSAR model and determine the directions of its subsequent modification; The aim of the work is to develop a toolkit of methods and economic and mathematical models for estimating the weighted average cost of a firm’s capital in terms of the equity component applicable in the conditions of the transforming Russian economy. The paper reflects the theoretical aspects of the concept of the cost of capital, the risk associated with investing in a risky asset, as well as the methodology for assessing the weighted average cost of the company’s capital. In parallel with the modification of the MSAR model, a methodology has been developed for assessing the risk-free rate and premium to investors in excess of the return on investment in a risk-free asset. Their values for the Russian stock market have been calculated; the methodology for estimating the beta coefficient has been clarified, a choice has been made in favor of ascending beta coefficients (bottoms-up), providing a more accurate assessment of the cost of equity. Theoretical studies are supported by practical calculations on the information base of JSC Polymetal.