KUBE.ME WACC - Weighted Average Cost of Capital
The WACC of Kuban'energo PAO (KUBE.ME) is 18.4%.
| Range | Selected | |
| Cost of equity | 19.8% - 21.4% | 20.6% |
| Tax rate | 26.0% - 27.4% | 26.7% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 17.5% - 19.2% | 18.4% |
| Category | Low | High |
| Long-term bond rate | 15.8% | 16.3% |
| Equity market risk premium | 11.7% | 12.7% |
| Adjusted beta | 0.34 | 0.36 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 19.8% | 21.4% |
| Tax rate | 26.0% | 27.4% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 17.5% | 19.2% |
| Selected WACC | 18.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KUBE.ME | Kuban'energo PAO | 0.15 | 0.15 | 0.13 |
| ENRU.ME | Enel Rossiya PAO | 1.43 | 0.62 | 0.3 |
| MAGE.ME | Magadanenergo PAO | 4.09 | 0.13 | 0.03 |
| MRKS.ME | MRSK Sibiri PAO | 0.58 | 0.04 | 0.02 |
| MRKV.ME | Rosseti Volga PAO | 0.63 | -0.12 | -0.08 |
| MRKZ.ME | MRSK Severo-Zapada PAO | 1.54 | -0.01 | -0.01 |
| PMSB.ME | Permskaya Energosbytovaya Kompaniya PAO | 0 | 0.11 | 0.11 |
| SARE.ME | Saratovenergo PAO | 0.74 | -1.3 | -0.84 |
| STSB.ME | Stavropol'energosbyt PAO | 1.23 | 0.07 | 0.04 |
| TGKD.ME | Quadra-Generiruyushchaya Kompaniya PAO | 1.06 | -0.28 | -0.16 |
| Low | High | |
| Unlevered beta | 0.01 | 0.03 |
| Relevered beta | 0.01 | 0.04 |
| Adjusted relevered beta | 0.34 | 0.36 |
KUBE.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 KUBE.ME:
cost_of_equity (20.60%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.34) + 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.