RSTI.ME
Rossiyskiye Seti PAO
Price:  
0.56 
RUB
Volume:  
49,623,200.00
Russian Federation | Electric Utilities
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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.