RMK.WA WACC - Weighted Average Cost of Capital

The WACC of Remak Energomontaz SA (RMK.WA) is 15.2%.

The Cost of Equity of Remak Energomontaz SA (RMK.WA) is 12.30%.

The Cost of Debt of Remak Energomontaz SA (RMK.WA) is 35.10%.

	Range	Selected
Cost of equity	10.40% - 14.20%	12.30%
Tax rate	18.60% - 28.70%	23.65%
Cost of debt	7.20% - 63.00%	35.10%
WACC	9.4% - 21.1%	15.2%

WACC

RMK.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.77	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	14.20%

Tax rate	18.60%	28.70%
Debt/Equity ratio	0.29	0.29
Cost of debt	7.20%	63.00%

After-tax WACC	9.4%	21.1%


Selected WACC	15.2%

RMK.WA'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 RMK.WA:

cost_of_equity (12.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * 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.