NNSB.ME
TNS Energo Nizhniy Novgorod PAO
Price:  
5,180 
RUB
Volume:  
170
Russian Federation | Electric Utilities

NNSB.ME WACC - Weighted Average Cost of Capital

The WACC of TNS Energo Nizhniy Novgorod PAO (NNSB.ME) is 19.9%.

The Cost of Equity of TNS Energo Nizhniy Novgorod PAO (NNSB.ME) is 21.1%.
The Cost of Debt of TNS Energo Nizhniy Novgorod PAO (NNSB.ME) is 5.5%.

RangeSelected
Cost of equity20.2% - 22.0%21.1%
Tax rate20.0% - 20.3%20.15%
Cost of debt4.0% - 7.0%5.5%
WACC19.0% - 20.9%19.9%
WACC

NNSB.ME WACC calculation

CategoryLowHigh
Long-term bond rate15.8%16.3%
Equity market risk premium11.7%12.7%
Adjusted beta0.370.41
Additional risk adjustments0.0%0.5%
Cost of equity20.2%22.0%
Tax rate20.0%20.3%
Debt/Equity ratio
0.070.07
Cost of debt4.0%7.0%
After-tax WACC19.0%20.9%
Selected WACC19.9%

NNSB.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 NNSB.ME:

cost_of_equity (21.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.37) + 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.