KMAZ.ME WACC - Weighted Average Cost of Capital

The WACC of Kamaz PAO (KMAZ.ME) is 21.5%.

The Cost of Equity of Kamaz PAO (KMAZ.ME) is 31.25%.

The Cost of Debt of Kamaz PAO (KMAZ.ME) is 18.75%.

	Range	Selected
Cost of equity	28.10% - 34.40%	31.25%
Tax rate	9.40% - 17.00%	13.20%
Cost of debt	9.90% - 27.60%	18.75%
WACC	15.9% - 27.0%	21.5%

WACC

KMAZ.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	1.06	1.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.10%	34.40%

Tax rate	9.40%	17.00%
Debt/Equity ratio	1.76	1.76
Cost of debt	9.90%	27.60%

After-tax WACC	15.9%	27.0%


Selected WACC	21.5%

KMAZ.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 KMAZ.ME:

cost_of_equity (31.25%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (1.06) + 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.