RTGZ.ME WACC - Weighted Average Cost of Capital

The WACC of Gazprom Gazoraspredeleniye Rostov-Na-Donu PAO (RTGZ.ME) is 13.8%.

The Cost of Equity of Gazprom Gazoraspredeleniye Rostov-Na-Donu PAO (RTGZ.ME) is 20.20%.

The Cost of Debt of Gazprom Gazoraspredeleniye Rostov-Na-Donu PAO (RTGZ.ME) is 5.50%.

	Range	Selected
Cost of equity	18.70% - 21.70%	20.20%
Tax rate	41.00% - 46.00%	43.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	12.6% - 15.0%	13.8%

WACC

RTGZ.ME WACC calculation

Category	Low	High

Long-term bond rate	11.6%	12.1%
Equity market risk premium	6.9%	7.9%
Adjusted beta	1.02	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.70%	21.70%

Tax rate	41.00%	46.00%
Debt/Equity ratio	0.6	0.6
Cost of debt	4.00%	7.00%

After-tax WACC	12.6%	15.0%


Selected WACC	13.8%

RTGZ.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 RTGZ.ME:

cost_of_equity (20.20%) = risk_free_rate (11.85%) + equity_risk_premium (7.40%) * adjusted_beta (1.02) + 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.