KTSB.ME WACC - Weighted Average Cost of Capital

The WACC of Kostromskaya Sbytovaya Kompaniya PAO (KTSB.ME) is 12.7%.

The Cost of Equity of Kostromskaya Sbytovaya Kompaniya PAO (KTSB.ME) is 17.00%.

The Cost of Debt of Kostromskaya Sbytovaya Kompaniya PAO (KTSB.ME) is 5.50%.

	Range	Selected
Cost of equity	15.90% - 18.10%	17.00%
Tax rate	24.90% - 25.80%	25.35%
Cost of debt	4.00% - 7.00%	5.50%
WACC	11.6% - 13.9%	12.7%

WACC

KTSB.ME WACC calculation

Category	Low	High

Long-term bond rate	11.6%	12.1%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.61	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.90%	18.10%

Tax rate	24.90%	25.80%
Debt/Equity ratio	0.49	0.49
Cost of debt	4.00%	7.00%

After-tax WACC	11.6%	13.9%


Selected WACC	12.7%

KTSB.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 KTSB.ME:

cost_of_equity (17.00%) = risk_free_rate (11.85%) + equity_risk_premium (7.40%) * adjusted_beta (0.61) + 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.