MSNG.ME WACC - Weighted Average Cost of Capital

The WACC of Mosenergo PAO (MSNG.ME) is 19.4%.

The Cost of Equity of Mosenergo PAO (MSNG.ME) is 20.80%.

The Cost of Debt of Mosenergo PAO (MSNG.ME) is 7.05%.

	Range	Selected
Cost of equity	19.80% - 21.80%	20.80%
Tax rate	19.60% - 21.10%	20.35%
Cost of debt	7.00% - 7.10%	7.05%
WACC	18.5% - 20.3%	19.4%

WACC

MSNG.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.35	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.80%	21.80%

Tax rate	19.60%	21.10%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	7.10%

After-tax WACC	18.5%	20.3%


Selected WACC	19.4%

MSNG.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 MSNG.ME:

cost_of_equity (20.80%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.35) + 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.