RKKE.ME WACC - Weighted Average Cost of Capital

The WACC of RKK Energiya im. S.P. Koroleva PAO (RKKE.ME) is 18.2%.

The Cost of Equity of RKK Energiya im. S.P. Koroleva PAO (RKKE.ME) is 25.55%.

The Cost of Debt of RKK Energiya im. S.P. Koroleva PAO (RKKE.ME) is 5.50%.

	Range	Selected
Cost of equity	21.40% - 29.70%	25.55%
Tax rate	10.20% - 30.90%	20.55%
Cost of debt	4.00% - 7.00%	5.50%
WACC	15.3% - 21.1%	18.2%

WACC

RKKE.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	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.40%	29.70%

Tax rate	10.20%	30.90%
Debt/Equity ratio	0.53	0.53
Cost of debt	4.00%	7.00%

After-tax WACC	15.3%	21.1%


Selected WACC	18.2%

RKKE.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 RKKE.ME:

cost_of_equity (25.55%) = 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.