KGKC.ME WACC - Weighted Average Cost of Capital

The WACC of Kurganskaya Generiruyushchaya Kompaniya PAO (KGKC.ME) is 17.5%.

The Cost of Equity of Kurganskaya Generiruyushchaya Kompaniya PAO (KGKC.ME) is 20.50%.

The Cost of Debt of Kurganskaya Generiruyushchaya Kompaniya PAO (KGKC.ME) is 11.70%.

	Range	Selected
Cost of equity	19.50% - 21.50%	20.50%
Tax rate	33.30% - 39.20%	36.25%
Cost of debt	7.00% - 16.40%	11.70%
WACC	16.2% - 18.9%	17.5%

WACC

KGKC.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.32	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.50%	21.50%

Tax rate	33.30%	39.20%
Debt/Equity ratio	0.29	0.29
Cost of debt	7.00%	16.40%

After-tax WACC	16.2%	18.9%


Selected WACC	17.5%

KGKC.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 KGKC.ME:

cost_of_equity (20.50%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.32) + 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.