KBSB.ME WACC - Weighted Average Cost of Capital

The WACC of TNS Energo Kuban' PAO (KBSB.ME) is 13.0%.

The Cost of Equity of TNS Energo Kuban' PAO (KBSB.ME) is 21.85%.

The Cost of Debt of TNS Energo Kuban' PAO (KBSB.ME) is 5.50%.

	Range	Selected
Cost of equity	20.50% - 23.20%	21.85%
Tax rate	20.60% - 24.80%	22.70%
Cost of debt	4.00% - 7.00%	5.50%
WACC	11.8% - 14.2%	13.0%

WACC

KBSB.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.4	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.50%	23.20%

Tax rate	20.60%	24.80%
Debt/Equity ratio	1	1
Cost of debt	4.00%	7.00%

After-tax WACC	11.8%	14.2%


Selected WACC	13.0%

KBSB.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 KBSB.ME:

cost_of_equity (21.85%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.4) + 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.