RNFT.ME WACC - Weighted Average Cost of Capital

The WACC of NK Russneft' PAO (RNFT.ME) is 14.5%.

The Cost of Equity of NK Russneft' PAO (RNFT.ME) is 22.00%.

The Cost of Debt of NK Russneft' PAO (RNFT.ME) is 12.65%.

	Range	Selected
Cost of equity	20.40% - 23.60%	22.00%
Tax rate	28.40% - 30.80%	29.60%
Cost of debt	8.30% - 17.00%	12.65%
WACC	12.1% - 16.9%	14.5%

WACC

RNFT.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.39	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.40%	23.60%

Tax rate	28.40%	30.80%
Debt/Equity ratio	1.34	1.34
Cost of debt	8.30%	17.00%

After-tax WACC	12.1%	16.9%


Selected WACC	14.5%

RNFT.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 RNFT.ME:

cost_of_equity (22.00%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.39) + 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.