RDRB.ME WACC - Weighted Average Cost of Capital

The WACC of Rossiyskiy Aktsionernyi Kommercheskiy Dorozhnyi Bank PAO (RDRB.ME) is 13.0%.

The Cost of Equity of Rossiyskiy Aktsionernyi Kommercheskiy Dorozhnyi Bank PAO (RDRB.ME) is 21.75%.

The Cost of Debt of Rossiyskiy Aktsionernyi Kommercheskiy Dorozhnyi Bank PAO (RDRB.ME) is 5.00%.

	Range	Selected
Cost of equity	20.50% - 23.00%	21.75%
Tax rate	23.50% - 24.20%	23.85%
Cost of debt	5.00% - 5.00%	5.00%
WACC	12.4% - 13.7%	13.0%

WACC

RDRB.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.4	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.50%	23.00%

Tax rate	23.50%	24.20%
Debt/Equity ratio	0.94	0.94
Cost of debt	5.00%	5.00%

After-tax WACC	12.4%	13.7%


Selected WACC	13.0%

RDRB.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 RDRB.ME:

cost_of_equity (21.75%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.4) + 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.