MRKV.ME WACC - Weighted Average Cost of Capital

The WACC of Rosseti Volga PAO (MRKV.ME) is 17.6%.

The Cost of Equity of Rosseti Volga PAO (MRKV.ME) is 22.20%.

The Cost of Debt of Rosseti Volga PAO (MRKV.ME) is 14.75%.

	Range	Selected
Cost of equity	20.70% - 23.70%	22.20%
Tax rate	25.10% - 31.50%	28.30%
Cost of debt	12.20% - 17.30%	14.75%
WACC	16.2% - 19.1%	17.6%

WACC

MRKV.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.42	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.70%	23.70%

Tax rate	25.10%	31.50%
Debt/Equity ratio	0.63	0.63
Cost of debt	12.20%	17.30%

After-tax WACC	16.2%	19.1%


Selected WACC	17.6%

MRKV.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 MRKV.ME:

cost_of_equity (22.20%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.42) + 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.