GEMA.ME WACC - Weighted Average Cost of Capital

The WACC of MMTsB PAO (GEMA.ME) is 18.1%.

The Cost of Equity of MMTsB PAO (GEMA.ME) is 18.35%.

The Cost of Debt of MMTsB PAO (GEMA.ME) is 12.30%.

	Range	Selected
Cost of equity	16.80% - 19.90%	18.35%
Tax rate	22.50% - 22.60%	22.55%
Cost of debt	12.30% - 12.30%	12.30%
WACC	16.6% - 19.6%	18.1%

WACC

GEMA.ME WACC calculation

Category	Low	High

Long-term bond rate	11.6%	12.1%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.74	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.80%	19.90%

Tax rate	22.50%	22.60%
Debt/Equity ratio	0.03	0.03
Cost of debt	12.30%	12.30%

After-tax WACC	16.6%	19.6%


Selected WACC	18.1%

GEMA.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 GEMA.ME:

cost_of_equity (18.35%) = risk_free_rate (11.85%) + equity_risk_premium (7.40%) * adjusted_beta (0.74) + 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.