MFGS.ME WACC - Weighted Average Cost of Capital

The WACC of Slavneft Megionneftegaz PAO (MFGS.ME) is 16.5%.

The Cost of Equity of Slavneft Megionneftegaz PAO (MFGS.ME) is 26.75%.

The Cost of Debt of Slavneft Megionneftegaz PAO (MFGS.ME) is 5.00%.

	Range	Selected
Cost of equity	24.80% - 28.70%	26.75%
Tax rate	19.30% - 19.90%	19.60%
Cost of debt	5.00% - 5.00%	5.00%
WACC	15.4% - 17.5%	16.5%

WACC

MFGS.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.78	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	24.80%	28.70%

Tax rate	19.30%	19.90%
Debt/Equity ratio	0.83	0.83
Cost of debt	5.00%	5.00%

After-tax WACC	15.4%	17.5%


Selected WACC	16.5%

MFGS.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 MFGS.ME:

cost_of_equity (26.75%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.78) + 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.