MRKK.ME WACC - Weighted Average Cost of Capital

The WACC of Rosseti Severnyi Kavkaz PAO (MRKK.ME) is 19.6%.

The Cost of Equity of Rosseti Severnyi Kavkaz PAO (MRKK.ME) is 20.40%.

The Cost of Debt of Rosseti Severnyi Kavkaz PAO (MRKK.ME) is 7.80%.

	Range	Selected
Cost of equity	19.60% - 21.20%	20.40%
Tax rate	11.30% - 20.30%	15.80%
Cost of debt	7.00% - 8.60%	7.80%
WACC	18.8% - 20.4%	19.6%

WACC

MRKK.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.32	0.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.60%	21.20%

Tax rate	11.30%	20.30%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.00%	8.60%

After-tax WACC	18.8%	20.4%


Selected WACC	19.6%

MRKK.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 MRKK.ME:

cost_of_equity (20.40%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.32) + 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.