MAIL.L WACC - Weighted Average Cost of Capital

The WACC of Mail ru Group Ltd (MAIL.L) is 7.0%.

The Cost of Equity of Mail ru Group Ltd (MAIL.L) is 6.80%.

The Cost of Debt of Mail ru Group Ltd (MAIL.L) is 8.40%.

	Range	Selected
Cost of equity	5.80% - 7.80%	6.80%
Tax rate	8.60% - 11.80%	10.20%
Cost of debt	8.40% - 8.40%	8.40%
WACC	6.3% - 7.7%	7.0%

WACC

MAIL.L WACC calculation

Category	Low	High

Long-term bond rate	2.4%	2.9%
Equity market risk premium	4.8%	5.8%
Adjusted beta	0.7	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	7.80%

Tax rate	8.60%	11.80%
Debt/Equity ratio	0.33	0.33
Cost of debt	8.40%	8.40%

After-tax WACC	6.3%	7.7%


Selected WACC	7.0%

MAIL.L'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 MAIL.L:

cost_of_equity (6.80%) = risk_free_rate (2.65%) + equity_risk_premium (5.30%) * adjusted_beta (0.7) + 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.