AQUA.ME WACC - Weighted Average Cost of Capital

The WACC of Russkaya Akvakul'tura PAO (AQUA.ME) is 23.1%.

The Cost of Equity of Russkaya Akvakul'tura PAO (AQUA.ME) is 24.45%.

The Cost of Debt of Russkaya Akvakul'tura PAO (AQUA.ME) is 15.20%.

	Range	Selected
Cost of equity	22.90% - 26.00%	24.45%
Tax rate	1.00% - 1.20%	1.10%
Cost of debt	13.90% - 16.50%	15.20%
WACC	21.6% - 24.6%	23.1%

WACC

AQUA.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.6	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.90%	26.00%

Tax rate	1.00%	1.20%
Debt/Equity ratio	0.17	0.17
Cost of debt	13.90%	16.50%

After-tax WACC	21.6%	24.6%


Selected WACC	23.1%

AQUA.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 AQUA.ME:

cost_of_equity (24.45%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.6) + 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.