KMEZ.ME WACC - Weighted Average Cost of Capital

The WACC of Kovrovskiy Mekhanicheskiy Zavod PAO (KMEZ.ME) is 23.6%.

The Cost of Equity of Kovrovskiy Mekhanicheskiy Zavod PAO (KMEZ.ME) is 23.65%.

The Cost of Debt of Kovrovskiy Mekhanicheskiy Zavod PAO (KMEZ.ME) is 16.40%.

	Range	Selected
Cost of equity	21.60% - 25.70%	23.65%
Tax rate	20.90% - 37.40%	29.15%
Cost of debt	16.40% - 16.40%	16.40%
WACC	21.6% - 25.7%	23.6%

WACC

KMEZ.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.5	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.60%	25.70%

Tax rate	20.90%	37.40%
Debt/Equity ratio	0	0
Cost of debt	16.40%	16.40%

After-tax WACC	21.6%	25.7%


Selected WACC	23.6%

KMEZ.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 KMEZ.ME:

cost_of_equity (23.65%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.5) + 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.