KUZB.ME
Bank Kuznetskiy PAO
Price:  
0.06 
RUB
Volume:  
119,634,000.00
Russian Federation | Banks
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KUZB.ME WACC - Weighted Average Cost of Capital

The WACC of Bank Kuznetskiy PAO (KUZB.ME) is 19.7%.

The Cost of Equity of Bank Kuznetskiy PAO (KUZB.ME) is 21.35%.
The Cost of Debt of Bank Kuznetskiy PAO (KUZB.ME) is 5.00%.

Range Selected
Cost of equity 20.40% - 22.30% 21.35%
Tax rate 34.30% - 41.30% 37.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 18.8% - 20.5% 19.7%
WACC

KUZB.ME WACC calculation

Category Low High
Long-term bond rate 15.8% 16.3%
Equity market risk premium 11.7% 12.7%
Adjusted beta 0.39 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 20.40% 22.30%
Tax rate 34.30% 41.30%
Debt/Equity ratio 0.1 0.1
Cost of debt 5.00% 5.00%
After-tax WACC 18.8% 20.5%
Selected WACC 19.7%

KUZB.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 KUZB.ME:

cost_of_equity (21.35%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.39) + 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.