NKSH.ME WACC - Weighted Average Cost of Capital

The WACC of Nizhnekamskshina PAO (NKSH.ME) is 15.5%.

The Cost of Equity of Nizhnekamskshina PAO (NKSH.ME) is 27.05%.

The Cost of Debt of Nizhnekamskshina PAO (NKSH.ME) is 5.50%.

	Range	Selected
Cost of equity	24.20% - 29.90%	27.05%
Tax rate	24.10% - 26.70%	25.40%
Cost of debt	4.00% - 7.00%	5.50%
WACC	13.6% - 17.5%	15.5%

WACC

NKSH.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.72	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	24.20%	29.90%

Tax rate	24.10%	26.70%
Debt/Equity ratio	1	1
Cost of debt	4.00%	7.00%

After-tax WACC	13.6%	17.5%


Selected WACC	15.5%

NKSH.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 NKSH.ME:

cost_of_equity (27.05%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.72) + 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.