HYDR.ME WACC - Weighted Average Cost of Capital

The WACC of Federal Hydro-Generating Company RusHydro PAO (HYDR.ME) is 14.8%.

The Cost of Equity of Federal Hydro-Generating Company RusHydro PAO (HYDR.ME) is 21.30%.

The Cost of Debt of Federal Hydro-Generating Company RusHydro PAO (HYDR.ME) is 14.75%.

	Range	Selected
Cost of equity	20.30% - 22.30%	21.30%
Tax rate	34.70% - 40.90%	37.80%
Cost of debt	11.50% - 18.00%	14.75%
WACC	13.5% - 16.1%	14.8%

WACC

HYDR.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.39	0.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.30%	22.30%

Tax rate	34.70%	40.90%
Debt/Equity ratio	1.12	1.12
Cost of debt	11.50%	18.00%

After-tax WACC	13.5%	16.1%


Selected WACC	14.8%

HYDR.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 HYDR.ME:

cost_of_equity (21.30%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.39) + 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.