The WACC of Moskovskaya Birzha MMVB-RTS PAO (MOEX.ME) is 9.1%.
Range | Selected | |
Cost of equity | 43.50% - 58.70% | 51.10% |
Tax rate | 19.80% - 20.30% | 20.05% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 8.3% - 9.9% | 9.1% |
Category | Low | High |
Long-term bond rate | 15.8% | 16.3% |
Equity market risk premium | 11.7% | 12.7% |
Adjusted beta | 2.37 | 3.3 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 43.50% | 58.70% |
Tax rate | 19.80% | 20.30% |
Debt/Equity ratio | 8.2 | 8.2 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 8.3% | 9.9% |
Selected WACC | 9.1% | |
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 MOEX.ME:
cost_of_equity (51.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (2.37) + 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.