The WACC of Alrosa Nyurba PAO (ALNU.ME) is 11.4%.
| Range | Selected | |
| Cost of equity | 16.60% - 21.10% | 18.85% |
| Tax rate | 20.20% - 20.30% | 20.25% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 10.3% - 12.6% | 11.4% |
| Category | Low | High |
| Long-term bond rate | 8.9% | 9.4% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 1.12 | 1.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.60% | 21.10% |
| Tax rate | 20.20% | 20.30% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 10.3% | 12.6% |
| Selected WACC | 11.4% | |
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 ALNU.ME:
cost_of_equity (18.85%) = risk_free_rate (9.15%) + equity_risk_premium (7.40%) * adjusted_beta (1.12) + 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.