AFKS.ME WACC - Weighted Average Cost of Capital

The WACC of AFK Sistema PAO (AFKS.ME) is 15.6%.

The Cost of Equity of AFK Sistema PAO (AFKS.ME) is 22.15%.

The Cost of Debt of AFK Sistema PAO (AFKS.ME) is 18.60%.

	Range	Selected
Cost of equity	20.20% - 24.10%	22.15%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	9.60% - 27.60%	18.60%
WACC	9.5% - 21.8%	15.6%

WACC

AFKS.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.38	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.20%	24.10%

Tax rate	22.10%	22.30%
Debt/Equity ratio	5.54	5.54
Cost of debt	9.60%	27.60%

After-tax WACC	9.5%	21.8%


Selected WACC	15.6%

AFKS.ME's CAPM model and how its cost of Equity is calculated

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 AFKS.ME:

cost_of_equity (22.15%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.38) + 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.