RPMG3.SA
Refinaria de Petroleos de Manguinhos SA em Recuperacao Judicial
Price:  
2.83 
BRL
Volume:  
200.00
Brazil | Oil, Gas & Consumable Fuels
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RPMG3.SA WACC - Weighted Average Cost of Capital

The WACC of Refinaria de Petroleos de Manguinhos SA em Recuperacao Judicial (RPMG3.SA) is 16.5%.

The Cost of Equity of Refinaria de Petroleos de Manguinhos SA em Recuperacao Judicial (RPMG3.SA) is 16.80%.
The Cost of Debt of Refinaria de Petroleos de Manguinhos SA em Recuperacao Judicial (RPMG3.SA) is 5.00%.

Range Selected
Cost of equity 15.80% - 17.80% 16.80%
Tax rate 34.00% - 34.00% 34.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 15.5% - 17.5% 16.5%
WACC

RPMG3.SA WACC calculation

Category Low High
Long-term bond rate 11.9% 12.4%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.41 0.47
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.80% 17.80%
Tax rate 34.00% 34.00%
Debt/Equity ratio 0.02 0.02
Cost of debt 5.00% 5.00%
After-tax WACC 15.5% 17.5%
Selected WACC 16.5%

RPMG3.SA'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 RPMG3.SA:

cost_of_equity (16.80%) = risk_free_rate (12.15%) + equity_risk_premium (10.00%) * adjusted_beta (0.41) + 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.