SFIN.ME WACC - Weighted Average Cost of Capital

The WACC of Safmar Finansovye Investitsii PAO (SFIN.ME) is 12.3%.

The Cost of Equity of Safmar Finansovye Investitsii PAO (SFIN.ME) is 22.85%.

The Cost of Debt of Safmar Finansovye Investitsii PAO (SFIN.ME) is 5.50%.

	Range	Selected
Cost of equity	21.30% - 24.40%	22.85%
Tax rate	19.40% - 22.60%	21.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	11.0% - 13.6%	12.3%

WACC

SFIN.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.47	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.30%	24.40%

Tax rate	19.40%	22.60%
Debt/Equity ratio	1.32	1.32
Cost of debt	4.00%	7.00%

After-tax WACC	11.0%	13.6%


Selected WACC	12.3%

SFIN.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 SFIN.ME:

cost_of_equity (22.85%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.47) + 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.