AFKS.ME WACC - Weighted Average Cost of Capital

The WACC of AFK Sistema PAO (AFKS.ME) is 19.2%.

The Cost of Equity of AFK Sistema PAO (AFKS.ME) is 23.10%.

The Cost of Debt of AFK Sistema PAO (AFKS.ME) is 23.90%.

	Range	Selected
Cost of equity	21.40% - 24.80%	23.10%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	12.00% - 35.80%	23.90%
WACC	10.9% - 27.4%	19.2%

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	0.48	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.40%	24.80%

Tax rate	22.10%	22.30%
Debt/Equity ratio	6.64	6.64
Cost of debt	12.00%	35.80%

After-tax WACC	10.9%	27.4%


Selected WACC	19.2%

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 (23.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.48) + 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.