ALRS.ME WACC - Weighted Average Cost of Capital

The WACC of AK Alrosa PAO (ALRS.ME) is 18.1%.

The Cost of Equity of AK Alrosa PAO (ALRS.ME) is 21.35%.

The Cost of Debt of AK Alrosa PAO (ALRS.ME) is 11.15%.

	Range	Selected
Cost of equity	19.70% - 23.00%	21.35%
Tax rate	20.80% - 21.50%	21.15%
Cost of debt	5.00% - 17.30%	11.15%
WACC	15.6% - 20.6%	18.1%

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	0.33	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.70%	23.00%

Tax rate	20.80%	21.50%
Debt/Equity ratio	0.35	0.35
Cost of debt	5.00%	17.30%

After-tax WACC	15.6%	20.6%


Selected WACC	18.1%

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 (21.35%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.33) + 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.