AFLT.ME WACC - Weighted Average Cost of Capital

The WACC of Aeroflot-Rossiyskiye Avialinii PAO (AFLT.ME) is 13.4%.

The Cost of Equity of Aeroflot-Rossiyskiye Avialinii PAO (AFLT.ME) is 26.95%.

The Cost of Debt of Aeroflot-Rossiyskiye Avialinii PAO (AFLT.ME) is 12.05%.

	Range	Selected
Cost of equity	21.50% - 32.40%	26.95%
Tax rate	19.40% - 21.20%	20.30%
Cost of debt	5.20% - 18.90%	12.05%
WACC	8.0% - 18.8%	13.4%

WACC

AFLT.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.49	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.50%	32.40%

Tax rate	19.40%	21.20%
Debt/Equity ratio	3.52	3.52
Cost of debt	5.20%	18.90%

After-tax WACC	8.0%	18.8%


Selected WACC	13.4%

AFLT.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 AFLT.ME:

cost_of_equity (26.95%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.49) + 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.