RPMG3.SA WACC - Weighted Average Cost of Capital

The WACC of Refinaria de Petroleos de Manguinhos SA em Recuperacao Judicial (RPMG3.SA) is 17.0%.

The Cost of Equity of Refinaria de Petroleos de Manguinhos SA em Recuperacao Judicial (RPMG3.SA) is 17.25%.

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

	Range	Selected
Cost of equity	16.40% - 18.10%	17.25%
Tax rate	34.00% - 34.00%	34.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	16.2% - 17.9%	17.0%

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	0.48	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.40%	18.10%

Tax rate	34.00%	34.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.00%	5.00%

After-tax WACC	16.2%	17.9%


Selected WACC	17.0%

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 (17.25%) = risk_free_rate (12.15%) + equity_risk_premium (10.00%) * 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.