MRKC.ME
MRSK Tsentra PAO
Price:  
0.64 
RUB
Volume:  
39,926,800.00
Russian Federation | Electric Utilities
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MRKC.ME WACC - Weighted Average Cost of Capital

The WACC of MRSK Tsentra PAO (MRKC.ME) is 15.0%.

The Cost of Equity of MRSK Tsentra PAO (MRKC.ME) is 24.60%.
The Cost of Debt of MRSK Tsentra PAO (MRKC.ME) is 13.95%.

Range Selected
Cost of equity 23.50% - 25.70% 24.60%
Tax rate 33.70% - 35.20% 34.45%
Cost of debt 10.40% - 17.50% 13.95%
WACC 13.2% - 16.8% 15.0%
WACC

MRKC.ME WACC calculation

Category Low High
Long-term bond rate 15.8% 16.3%
Equity market risk premium 11.7% 12.7%
Adjusted beta 0.66 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 23.50% 25.70%
Tax rate 33.70% 35.20%
Debt/Equity ratio 1.64 1.64
Cost of debt 10.40% 17.50%
After-tax WACC 13.2% 16.8%
Selected WACC 15.0%

MRKC.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 MRKC.ME:

cost_of_equity (24.60%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.66) + 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.