KAZT.ME WACC - Weighted Average Cost of Capital

The WACC of KuybyshevAzot PAO (KAZT.ME) is 21.3%.

The Cost of Equity of KuybyshevAzot PAO (KAZT.ME) is 24.85%.

The Cost of Debt of KuybyshevAzot PAO (KAZT.ME) is 12.10%.

	Range	Selected
Cost of equity	23.00% - 26.70%	24.85%
Tax rate	17.80% - 24.10%	20.95%
Cost of debt	6.20% - 18.00%	12.10%
WACC	18.9% - 23.7%	21.3%

WACC

KAZT.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.61	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.00%	26.70%

Tax rate	17.80%	24.10%
Debt/Equity ratio	0.29	0.29
Cost of debt	6.20%	18.00%

After-tax WACC	18.9%	23.7%


Selected WACC	21.3%

KAZT.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 KAZT.ME:

cost_of_equity (24.85%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.61) + 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.