IRAO.ME WACC - Weighted Average Cost of Capital

The WACC of Inter RAO YEES PAO (IRAO.ME) is 20.2%.

The Cost of Equity of Inter RAO YEES PAO (IRAO.ME) is 22.95%.

The Cost of Debt of Inter RAO YEES PAO (IRAO.ME) is 10.20%.

	Range	Selected
Cost of equity	21.80% - 24.10%	22.95%
Tax rate	19.60% - 20.30%	19.95%
Cost of debt	4.00% - 16.40%	10.20%
WACC	18.4% - 22.1%	20.2%

WACC

IRAO.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.51	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.80%	24.10%

Tax rate	19.60%	20.30%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.00%	16.40%

After-tax WACC	18.4%	22.1%


Selected WACC	20.2%

IRAO.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 IRAO.ME:

cost_of_equity (22.95%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.51) + 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.