GMKN.ME WACC - Weighted Average Cost of Capital

The WACC of GMK Noril'skiy Nikel' PAO (GMKN.ME) is 19.0%.

The Cost of Equity of GMK Noril'skiy Nikel' PAO (GMKN.ME) is 22.80%.

The Cost of Debt of GMK Noril'skiy Nikel' PAO (GMKN.ME) is 13.40%.

	Range	Selected
Cost of equity	21.70% - 23.90%	22.80%
Tax rate	20.90% - 22.50%	21.70%
Cost of debt	7.90% - 18.90%	13.40%
WACC	16.9% - 21.0%	19.0%

WACC

GMKN.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.5	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.70%	23.90%

Tax rate	20.90%	22.50%
Debt/Equity ratio	0.45	0.45
Cost of debt	7.90%	18.90%

After-tax WACC	16.9%	21.0%


Selected WACC	19.0%

GMKN.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 GMKN.ME:

cost_of_equity (22.80%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.5) + 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.