MGNZ.ME WACC - Weighted Average Cost of Capital

The WACC of Solikamskiy Magniyevyi Zavod OAO (MGNZ.ME) is 17.5%.

The Cost of Equity of Solikamskiy Magniyevyi Zavod OAO (MGNZ.ME) is 21.85%.

The Cost of Debt of Solikamskiy Magniyevyi Zavod OAO (MGNZ.ME) is 5.00%.

	Range	Selected
Cost of equity	19.80% - 23.90%	21.85%
Tax rate	13.80% - 16.00%	14.90%
Cost of debt	5.00% - 5.00%	5.00%
WACC	16.0% - 19.0%	17.5%

WACC

MGNZ.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.35	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.80%	23.90%

Tax rate	13.80%	16.00%
Debt/Equity ratio	0.33	0.33
Cost of debt	5.00%	5.00%

After-tax WACC	16.0%	19.0%


Selected WACC	17.5%

MGNZ.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 MGNZ.ME:

cost_of_equity (21.85%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.35) + 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.