The WACC of Mediaholding PAO (ODVA.ME) is 7.0%.
| Range | Selected | |
| Cost of equity | 19.10% - 31.30% | 25.20% |
| Tax rate | -% - -% | -% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 6.4% - 7.7% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 15.8% | 16.3% |
| Equity market risk premium | 11.7% | 12.7% |
| Adjusted beta | 0.28 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 19.10% | 31.30% |
| Tax rate | -% | -% |
| Debt/Equity ratio | 8.9 | 8.9 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 6.4% | 7.7% |
| Selected WACC | 7.0% | |
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 ODVA.ME:
cost_of_equity (25.20%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.28) + 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.