TATN.ME WACC - Weighted Average Cost of Capital

The WACC of Tatneft' PAO (TATN.ME) is 21.7%.

The Cost of Equity of Tatneft' PAO (TATN.ME) is 22.30%.

The Cost of Debt of Tatneft' PAO (TATN.ME) is 11.25%.

	Range	Selected
Cost of equity	20.60% - 24.00%	22.30%
Tax rate	22.30% - 24.30%	23.30%
Cost of debt	6.10% - 16.40%	11.25%
WACC	19.9% - 23.5%	21.7%

WACC

TATN.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.42	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.60%	24.00%

Tax rate	22.30%	24.30%
Debt/Equity ratio	0.05	0.05
Cost of debt	6.10%	16.40%

After-tax WACC	19.9%	23.5%


Selected WACC	21.7%

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 (22.30%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.42) + 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.