The WACC of Kuzbasskaya Toplivnaya Kompaniya PAO (KBTK.ME) is 10.7%.
| Range | Selected | |
| Cost of equity | 12.90% - 15.10% | 14.00% |
| Tax rate | 19.40% - 20.90% | 20.15% |
| Cost of debt | 6.60% - 7.00% | 6.80% |
| WACC | 10.0% - 11.4% | 10.7% |
| Category | Low | High |
| Long-term bond rate | 8.9% | 9.4% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.58 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.90% | 15.10% |
| Tax rate | 19.40% | 20.90% |
| Debt/Equity ratio | 0.63 | 0.63 |
| Cost of debt | 6.60% | 7.00% |
| After-tax WACC | 10.0% | 11.4% |
| Selected WACC | 10.7% | |
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 KBTK.ME:
cost_of_equity (14.00%) = risk_free_rate (9.15%) + equity_risk_premium (7.40%) * adjusted_beta (0.58) + 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.