MRKP.ME WACC - Weighted Average Cost of Capital

The WACC of MRSK Tsentra i Privolzh'ya PAO (MRKP.ME) is 17.3%.

The Cost of Equity of MRSK Tsentra i Privolzh'ya PAO (MRKP.ME) is 23.40%.

The Cost of Debt of MRSK Tsentra i Privolzh'ya PAO (MRKP.ME) is 12.20%.

	Range	Selected
Cost of equity	22.40% - 24.40%	23.40%
Tax rate	23.10% - 23.30%	23.20%
Cost of debt	7.10% - 17.30%	12.20%
WACC	15.1% - 19.6%	17.3%

WACC

MRKP.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.57	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.40%	24.40%

Tax rate	23.10%	23.30%
Debt/Equity ratio	0.76	0.76
Cost of debt	7.10%	17.30%

After-tax WACC	15.1%	19.6%


Selected WACC	17.3%

MRKP.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 MRKP.ME:

cost_of_equity (23.40%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.57) + 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.