MRSB.ME WACC - Weighted Average Cost of Capital

The WACC of Mordovskaya Energosbytovaya Kompaniya PAO (MRSB.ME) is 11.5%.

The Cost of Equity of Mordovskaya Energosbytovaya Kompaniya PAO (MRSB.ME) is 18.40%.

The Cost of Debt of Mordovskaya Energosbytovaya Kompaniya PAO (MRSB.ME) is 5.50%.

	Range	Selected
Cost of equity	17.20% - 19.60%	18.40%
Tax rate	30.10% - 34.60%	32.35%
Cost of debt	4.00% - 7.00%	5.50%
WACC	10.4% - 12.6%	11.5%

WACC

MRSB.ME WACC calculation

Category	Low	High

Long-term bond rate	11.6%	12.1%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.81	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.20%	19.60%

Tax rate	30.10%	34.60%
Debt/Equity ratio	0.89	0.89
Cost of debt	4.00%	7.00%

After-tax WACC	10.4%	12.6%


Selected WACC	11.5%

MRSB.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 MRSB.ME:

cost_of_equity (18.40%) = risk_free_rate (11.85%) + equity_risk_premium (7.40%) * adjusted_beta (0.81) + 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.