RSTI.ME WACC - Weighted Average Cost of Capital

The WACC of Rossiyskiye Seti PAO (RSTI.ME) is 13.0%.

The Cost of Equity of Rossiyskiye Seti PAO (RSTI.ME) is 31.20%.

The Cost of Debt of Rossiyskiye Seti PAO (RSTI.ME) is 12.50%.

	Range	Selected
Cost of equity	28.60% - 33.80%	31.20%
Tax rate	24.40% - 25.30%	24.85%
Cost of debt	7.50% - 17.50%	12.50%
WACC	9.5% - 16.5%	13.0%

WACC

RSTI.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	1.09	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.60%	33.80%

Tax rate	24.40%	25.30%
Debt/Equity ratio	5.03	5.03
Cost of debt	7.50%	17.50%

After-tax WACC	9.5%	16.5%


Selected WACC	13.0%

RSTI.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 RSTI.ME:

cost_of_equity (31.20%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (1.09) + 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.