RPMG3.SA WACC - Weighted Average Cost of Capital

The WACC of Refinaria de Petroleos de Manguinhos SA em Recuperacao Judicial (RPMG3.SA) is 18.4%.

The Cost of Equity of Refinaria de Petroleos de Manguinhos SA em Recuperacao Judicial (RPMG3.SA) is 18.80%.

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

	Range	Selected
Cost of equity	17.80% - 19.80%	18.80%
Tax rate	34.00% - 34.00%	34.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	17.4% - 19.4%	18.4%

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	0.62	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.80%	19.80%

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

After-tax WACC	17.4%	19.4%


Selected WACC	18.4%

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 (18.80%) = risk_free_rate (12.15%) + equity_risk_premium (10.00%) * adjusted_beta (0.62) + 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.