OGKB.ME WACC - Weighted Average Cost of Capital

The WACC of OGK-2 PAO (OGKB.ME) is 17.3%.

The Cost of Equity of OGK-2 PAO (OGKB.ME) is 22.55%.

The Cost of Debt of OGK-2 PAO (OGKB.ME) is 11.45%.

	Range	Selected
Cost of equity	21.40% - 23.70%	22.55%
Tax rate	20.70% - 21.70%	21.20%
Cost of debt	6.50% - 16.40%	11.45%
WACC	15.1% - 19.5%	17.3%

WACC

OGKB.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.48	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.40%	23.70%

Tax rate	20.70%	21.70%
Debt/Equity ratio	0.62	0.62
Cost of debt	6.50%	16.40%

After-tax WACC	15.1%	19.5%


Selected WACC	17.3%

OGKB.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 OGKB.ME:

cost_of_equity (22.55%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.48) + 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.