ALRS.ME WACC - Weighted Average Cost of Capital

The WACC of AK Alrosa PAO (ALRS.ME) is 19.7%.

The Cost of Equity of AK Alrosa PAO (ALRS.ME) is 22.40%.

The Cost of Debt of AK Alrosa PAO (ALRS.ME) is 10.25%.

	Range	Selected
Cost of equity	20.80% - 24.00%	22.40%
Tax rate	21.50% - 22.20%	21.85%
Cost of debt	4.10% - 16.40%	10.25%
WACC	17.5% - 21.8%	19.7%

WACC

ALRS.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.43	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.80%	24.00%

Tax rate	21.50%	22.20%
Debt/Equity ratio	0.24	0.24
Cost of debt	4.10%	16.40%

After-tax WACC	17.5%	21.8%


Selected WACC	19.7%

ALRS.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 ALRS.ME:

cost_of_equity (22.40%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.43) + 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.