GAZP.ME WACC - Weighted Average Cost of Capital

The WACC of Gazprom PAO (GAZP.ME) is 15.1%.

The Cost of Equity of Gazprom PAO (GAZP.ME) is 21.80%.

The Cost of Debt of Gazprom PAO (GAZP.ME) is 14.90%.

	Range	Selected
Cost of equity	20.50% - 23.10%	21.80%
Tax rate	21.30% - 21.80%	21.55%
Cost of debt	5.50% - 24.30%	14.90%
WACC	9.8% - 20.4%	15.1%

WACC

GAZP.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.4	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.50%	23.10%

Tax rate	21.30%	21.80%
Debt/Equity ratio	1.95	1.95
Cost of debt	5.50%	24.30%

After-tax WACC	9.8%	20.4%


Selected WACC	15.1%

GAZP.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 GAZP.ME:

cost_of_equity (21.80%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.4) + 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.