RTSB.ME WACC - Weighted Average Cost of Capital

The WACC of TNS Energo Rostov-Na-Donu PAO (RTSB.ME) is 15.2%.

The Cost of Equity of TNS Energo Rostov-Na-Donu PAO (RTSB.ME) is 20.40%.

The Cost of Debt of TNS Energo Rostov-Na-Donu PAO (RTSB.ME) is 13.25%.

	Range	Selected
Cost of equity	19.40% - 21.40%	20.40%
Tax rate	21.30% - 26.80%	24.05%
Cost of debt	10.10% - 16.40%	13.25%
WACC	13.7% - 16.7%	15.2%

WACC

RTSB.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.31	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.40%	21.40%

Tax rate	21.30%	26.80%
Debt/Equity ratio	1	1
Cost of debt	10.10%	16.40%

After-tax WACC	13.7%	16.7%


Selected WACC	15.2%

RTSB.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 RTSB.ME:

cost_of_equity (20.40%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.31) + 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.