SNGS.ME WACC - Weighted Average Cost of Capital

The WACC of Surgutneftegaz PAO (SNGS.ME) is 21.8%.

The Cost of Equity of Surgutneftegaz PAO (SNGS.ME) is 21.75%.

The Cost of Debt of Surgutneftegaz PAO (SNGS.ME) is 43.65%.

	Range	Selected
Cost of equity	20.40% - 23.10%	21.75%
Tax rate	18.20% - 19.00%	18.60%
Cost of debt	16.40% - 70.90%	43.65%
WACC	20.4% - 23.1%	21.8%

WACC

SNGS.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.39	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.40%	23.10%

Tax rate	18.20%	19.00%
Debt/Equity ratio	0	0
Cost of debt	16.40%	70.90%

After-tax WACC	20.4%	23.1%


Selected WACC	21.8%

SNGS.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 SNGS.ME:

cost_of_equity (21.75%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.39) + 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.