LSRG.ME WACC - Weighted Average Cost of Capital

The WACC of Gruppa LSR PAO (LSRG.ME) is 13.5%.

The Cost of Equity of Gruppa LSR PAO (LSRG.ME) is 24.35%.

The Cost of Debt of Gruppa LSR PAO (LSRG.ME) is 14.95%.

	Range	Selected
Cost of equity	20.20% - 28.50%	24.35%
Tax rate	28.20% - 29.60%	28.90%
Cost of debt	8.90% - 21.00%	14.95%
WACC	9.3% - 17.7%	13.5%

WACC

LSRG.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.38	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.20%	28.50%

Tax rate	28.20%	29.60%
Debt/Equity ratio	3.77	3.77
Cost of debt	8.90%	21.00%

After-tax WACC	9.3%	17.7%


Selected WACC	13.5%

LSRG.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 LSRG.ME:

cost_of_equity (24.35%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.38) + 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.