KUBE.ME WACC - Weighted Average Cost of Capital

The WACC of Kuban'energo PAO (KUBE.ME) is 18.4%.

The Cost of Equity of Kuban'energo PAO (KUBE.ME) is 20.60%.

The Cost of Debt of Kuban'energo PAO (KUBE.ME) is 5.50%.

	Range	Selected
Cost of equity	19.80% - 21.40%	20.60%
Tax rate	26.00% - 27.40%	26.70%
Cost of debt	4.00% - 7.00%	5.50%
WACC	17.5% - 19.2%	18.4%

WACC

KUBE.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.34	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.80%	21.40%

Tax rate	26.00%	27.40%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.00%	7.00%

After-tax WACC	17.5%	19.2%


Selected WACC	18.4%

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.