MAGN.ME WACC - Weighted Average Cost of Capital

The WACC of Magnitogorskiy Metallurgicheskiy Kombinat PAO (MAGN.ME) is 12.8%.

The Cost of Equity of Magnitogorskiy Metallurgicheskiy Kombinat PAO (MAGN.ME) is 43.95%.

The Cost of Debt of Magnitogorskiy Metallurgicheskiy Kombinat PAO (MAGN.ME) is 10.20%.

	Range	Selected
Cost of equity	34.40% - 53.50%	43.95%
Tax rate	21.50% - 22.40%	21.95%
Cost of debt	4.00% - 16.40%	10.20%
WACC	7.3% - 18.2%	12.8%

WACC

MAGN.ME WACC calculation

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	34.40%	53.50%

Tax rate	21.50%	22.40%
Debt/Equity ratio	6.44	6.44
Cost of debt	4.00%	16.40%

After-tax WACC	7.3%	18.2%


Selected WACC	12.8%

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.