RTKM.ME WACC - Weighted Average Cost of Capital

The WACC of Rostelekom PAO (RTKM.ME) is 16.3%.

The Cost of Equity of Rostelekom PAO (RTKM.ME) is 22.10%.

The Cost of Debt of Rostelekom PAO (RTKM.ME) is 18.65%.

	Range	Selected
Cost of equity	19.70% - 24.50%	22.10%
Tax rate	24.20% - 28.00%	26.10%
Cost of debt	9.70% - 27.60%	18.65%
WACC	11.3% - 21.3%	16.3%

WACC

RTKM.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.34	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.70%	24.50%

Tax rate	24.20%	28.00%
Debt/Equity ratio	2.17	2.17
Cost of debt	9.70%	27.60%

After-tax WACC	11.3%	21.3%


Selected WACC	16.3%

RTKM.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 RTKM.ME:

cost_of_equity (22.10%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.34) + 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.