NNSB.ME WACC - Weighted Average Cost of Capital

The WACC of TNS Energo Nizhniy Novgorod PAO (NNSB.ME) is 19.1%.

The Cost of Equity of TNS Energo Nizhniy Novgorod PAO (NNSB.ME) is 20.60%.

The Cost of Debt of TNS Energo Nizhniy Novgorod PAO (NNSB.ME) is 15.80%.

	Range	Selected
Cost of equity	19.60% - 21.60%	20.60%
Tax rate	19.70% - 19.90%	19.80%
Cost of debt	4.00% - 27.60%	15.80%
WACC	16.5% - 21.7%	19.1%

WACC

NNSB.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.33	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.60%	21.60%

Tax rate	19.70%	19.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	4.00%	27.60%

After-tax WACC	16.5%	21.7%


Selected WACC	19.1%

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 (20.60%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.33) + 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.