MAGN.ME WACC - Weighted Average Cost of Capital
The WACC of Magnitogorskiy Metallurgicheskiy Kombinat PAO (MAGN.ME) is 12.8%.
| Range | Selected | |
| Cost of equity | 34.4% - 53.5% | 43.95% |
| Tax rate | 21.5% - 22.4% | 21.95% |
| Cost of debt | 4.0% - 16.4% | 10.2% |
| WACC | 7.3% - 18.2% | 12.8% |
| Category | Low | High |
| Long-term bond rate | 15.8% | 16.3% |
| Equity market risk premium | 11.7% | 12.7% |
| Adjusted beta | 1.6 | 2.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 34.4% | 53.5% |
| Tax rate | 21.5% | 22.4% |
| Debt/Equity ratio | 6.44 | 6.44 |
| Cost of debt | 4.0% | 16.4% |
| After-tax WACC | 7.3% | 18.2% |
| Selected WACC | 12.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MAGN.ME | Magnitogorskiy Metallurgicheskiy Kombinat PAO | 6.44 | 0.29 | 0.05 |
| 000708.SZ | CITIC Pacific Special Steel Group Co Ltd | 0.7 | 1.16 | 0.75 |
| 005490.KS | Posco | 1.34 | 1.65 | 0.81 |
| 600010.SS | Inner Mongolia BaoTou Steel Union Co Ltd | 0.62 | 1.28 | 0.86 |
| AMEZ.ME | Ashinskiy Metzavod PAO | 0.04 | 0.5 | 0.49 |
| CHEP.ME | Chelyabinskiy Truboprokatnyi Zavod PAO | 0.67 | 0.85 | 0.55 |
| CHMK.ME | Chelyabinskiy Metallurgicheskiy Kombinat PAO | 5.74 | 0.04 | 0.01 |
| NLMK.ME | Novolipetsk Steel PAO | 4.33 | 0.2 | 0.05 |
| TATASTEEL.NS | Tata Steel Ltd | 0.44 | 1.25 | 0.92 |
| URKZ.ME | Ural'skaya Kuznitsa PAO | 0.1 | -0.4 | -0.37 |
| Low | High | |
| Unlevered beta | 0.31 | 0.63 |
| Relevered beta | 1.9 | 3.82 |
| Adjusted relevered beta | 1.6 | 2.89 |
MAGN.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 MAGN.ME:
cost_of_equity (43.95%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (1.6) + 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.