The WACC of Elektrotsink PAO (ELTZ.ME) is 6.2%.
| Range | Selected | |
| Cost of equity | 24.60% - 33.70% | 29.15% |
| Tax rate | 15.40% - 17.50% | 16.45% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 5.9% - 6.6% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 11.6% | 12.1% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 1.87 | 2.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 24.60% | 33.70% |
| Tax rate | 15.40% | 17.50% |
| Debt/Equity ratio | 11.19 | 11.19 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 5.9% | 6.6% |
| Selected WACC | 6.2% | |
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 ELTZ.ME:
cost_of_equity (29.15%) = risk_free_rate (11.85%) + equity_risk_premium (7.40%) * adjusted_beta (1.87) + 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.