FESH.ME WACC - Weighted Average Cost of Capital

The WACC of Dal'nevostochnoye Morskoye Parokhodstvo PAO (FESH.ME) is 21.6%.

The Cost of Equity of Dal'nevostochnoye Morskoye Parokhodstvo PAO (FESH.ME) is 23.35%.

The Cost of Debt of Dal'nevostochnoye Morskoye Parokhodstvo PAO (FESH.ME) is 15.10%.

	Range	Selected
Cost of equity	21.50% - 25.20%	23.35%
Tax rate	11.30% - 13.10%	12.20%
Cost of debt	13.20% - 17.00%	15.10%
WACC	19.7% - 23.4%	21.6%

WACC

FESH.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.48	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.50%	25.20%

Tax rate	11.30%	13.10%
Debt/Equity ratio	0.21	0.21
Cost of debt	13.20%	17.00%

After-tax WACC	19.7%	23.4%


Selected WACC	21.6%

FESH.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 FESH.ME:

cost_of_equity (23.35%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.48) + 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.