Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.59	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.7%	27.0%

Tax rate	22.3%	23.7%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.1%	16.4%

After-tax WACC	21.9%	26.4%


Selected WACC	24.2%

TATN.ME WACC - Detailed calculations of Beta

		Debt/Equity		Unlevered
Peers	Company Name	ratio	Beta	beta

TATN.ME	Tatneft' PAO	0.04	0.48	0.46
1605.T	Inpex Corp	0.41	0.84	0.64
1662.T	Japan Petroleum Exploration Co Ltd	1.01	0.76	0.42
BANE.ME	ANK Bashneft' PAO	0.23	0.23	0.2
MFGS.ME	Slavneft Megionneftegaz PAO	0.83	0.02	0.01
NVTK.ME	Novatek PAO	0.09	0.86	0.8
PTTEP.BK	PTT Exploration and Production PCL	0.3	0.32	0.26
SNGS.ME	Surgutneftegaz PAO	0	-0.47	-0.47
STO.AX	Santos Ltd	0.41	1.16	0.88
WPL.AX	Woodside Petroleum Ltd	0.33	1.43	1.14

	Low	High

Unlevered beta	0.36	0.53
Relevered beta	0.39	0.7
Adjusted relevered beta	0.59	0.8

TATN.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 TATN.ME:

cost_of_equity (24.85%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.59) + 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.