PLZL.ME WACC - Weighted Average Cost of Capital

The WACC of Polyus PAO (PLZL.ME) is 21.5%.

The Cost of Equity of Polyus PAO (PLZL.ME) is 27.10%.

The Cost of Debt of Polyus PAO (PLZL.ME) is 12.25%.

	Range	Selected
Cost of equity	24.70% - 29.50%	27.10%
Tax rate	18.60% - 19.50%	19.05%
Cost of debt	7.60% - 16.90%	12.25%
WACC	18.6% - 24.3%	21.5%

WACC

PLZL.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.77	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	24.70%	29.50%

Tax rate	18.60%	19.50%
Debt/Equity ratio	0.49	0.49
Cost of debt	7.60%	16.90%

After-tax WACC	18.6%	24.3%


Selected WACC	21.5%

PLZL.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 PLZL.ME:

cost_of_equity (27.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.77) + 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.