MTSS.ME WACC - Weighted Average Cost of Capital

The WACC of Mobil'nye Telesistemy PAO (MTSS.ME) is 19.5%.

The Cost of Equity of Mobil'nye Telesistemy PAO (MTSS.ME) is 25.50%.

The Cost of Debt of Mobil'nye Telesistemy PAO (MTSS.ME) is 18.65%.

	Range	Selected
Cost of equity	23.40% - 27.60%	25.50%
Tax rate	19.30% - 20.00%	19.65%
Cost of debt	9.70% - 27.60%	18.65%
WACC	14.6% - 24.4%	19.5%

WACC

MTSS.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.65	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.40%	27.60%

Tax rate	19.30%	20.00%
Debt/Equity ratio	1.3	1.3
Cost of debt	9.70%	27.60%

After-tax WACC	14.6%	24.4%


Selected WACC	19.5%

MTSS.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 MTSS.ME:

cost_of_equity (25.50%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.65) + 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.