MTLR.ME WACC - Weighted Average Cost of Capital

The WACC of Mechel PAO (MTLR.ME) is 20.4%.

The Cost of Equity of Mechel PAO (MTLR.ME) is 21.50%.

The Cost of Debt of Mechel PAO (MTLR.ME) is 21.25%.

	Range	Selected
Cost of equity	19.40% - 23.60%	21.50%
Tax rate	6.60% - 7.00%	6.80%
Cost of debt	9.70% - 32.80%	21.25%
WACC	12.7% - 28.0%	20.4%

WACC

MTLR.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.31	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.40%	23.60%

Tax rate	6.60%	7.00%
Debt/Equity ratio	1.82	1.82
Cost of debt	9.70%	32.80%

After-tax WACC	12.7%	28.0%


Selected WACC	20.4%

MTLR.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 MTLR.ME:

cost_of_equity (21.50%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.31) + 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.