MTSS.ME WACC - Weighted Average Cost of Capital

The WACC of Mobil'nye Telesistemy PAO (MTSS.ME) is 20.2%.

The Cost of Equity of Mobil'nye Telesistemy PAO (MTSS.ME) is 25.60%.

The Cost of Debt of Mobil'nye Telesistemy PAO (MTSS.ME) is 20.00%.

	Range	Selected
Cost of equity	23.50% - 27.70%	25.60%
Tax rate	18.60% - 19.20%	18.90%
Cost of debt	12.40% - 27.60%	20.00%
WACC	15.8% - 24.6%	20.2%

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	0.66	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.50%	27.70%

Tax rate	18.60%	19.20%
Debt/Equity ratio	1.35	1.35
Cost of debt	12.40%	27.60%

After-tax WACC	15.8%	24.6%


Selected WACC	20.2%

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 (25.60%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.66) + 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.