The WACC of Gorodskiye Innovatsionnye Tekhnologii PAO (GRNT.ME) is 16.2%.
| Range | Selected | |
| Cost of equity | 15.70% - 17.80% | 16.75% |
| Tax rate | 13.10% - 15.70% | 14.40% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 15.2% - 17.2% | 16.2% |
| Category | Low | High |
| Long-term bond rate | 11.6% | 12.1% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.6 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.70% | 17.80% |
| Tax rate | 13.10% | 15.70% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 15.2% | 17.2% |
| Selected WACC | 16.2% | |
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 GRNT.ME:
cost_of_equity (16.75%) = risk_free_rate (11.85%) + equity_risk_premium (7.40%) * adjusted_beta (0.6) + 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.