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