The WACC of Mobil'nye Telesistemy PAO (MTSS.ME) is 19.1%.
| Range | Selected | |
| Cost of equity | 22.80% - 27.50% | 25.15% |
| Tax rate | 19.30% - 20.00% | 19.65% |
| Cost of debt | 9.80% - 24.30% | 17.05% |
| WACC | 15.0% - 23.2% | 19.1% |
| Category | Low | High |
| Long-term bond rate | 15.8% | 16.3% |
| Equity market risk premium | 11.7% | 12.7% |
| Adjusted beta | 0.6 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 22.80% | 27.50% |
| Tax rate | 19.30% | 20.00% |
| Debt/Equity ratio | 1.11 | 1.11 |
| Cost of debt | 9.80% | 24.30% |
| After-tax WACC | 15.0% | 23.2% |
| Selected WACC | 19.1% | |
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 MTSS.ME:
cost_of_equity (25.15%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.6) + 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.