DVEC.ME WACC - Weighted Average Cost of Capital

The WACC of Dal'nevostochnaya Energeticheskaya Kompaniya PAO (DVEC.ME) is 17.6%.

The Cost of Equity of Dal'nevostochnaya Energeticheskaya Kompaniya PAO (DVEC.ME) is 22.10%.

The Cost of Debt of Dal'nevostochnaya Energeticheskaya Kompaniya PAO (DVEC.ME) is 5.80%.

	Range	Selected
Cost of equity	20.70% - 23.50%	22.10%
Tax rate	13.50% - 21.90%	17.70%
Cost of debt	4.60% - 7.00%	5.80%
WACC	16.4% - 18.9%	17.6%

WACC

DVEC.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.42	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.70%	23.50%

Tax rate	13.50%	21.90%
Debt/Equity ratio	0.35	0.35
Cost of debt	4.60%	7.00%

After-tax WACC	16.4%	18.9%


Selected WACC	17.6%

DVEC.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 DVEC.ME:

cost_of_equity (22.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.42) + 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.