LSRG.ME WACC - Weighted Average Cost of Capital

The WACC of Gruppa LSR PAO (LSRG.ME) is 12.9%.

The Cost of Equity of Gruppa LSR PAO (LSRG.ME) is 22.40%.

The Cost of Debt of Gruppa LSR PAO (LSRG.ME) is 13.45%.

	Range	Selected
Cost of equity	20.10% - 24.70%	22.40%
Tax rate	27.10% - 29.60%	28.35%
Cost of debt	8.00% - 18.90%	13.45%
WACC	9.6% - 16.3%	12.9%

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	0.37	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.10%	24.70%

Tax rate	27.10%	29.60%
Debt/Equity ratio	2.8	2.8
Cost of debt	8.00%	18.90%

After-tax WACC	9.6%	16.3%


Selected WACC	12.9%

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 (22.40%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.37) + 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.