TGKA.ME WACC - Weighted Average Cost of Capital

The WACC of TGK-1 PAO (TGKA.ME) is 16.6%.

The Cost of Equity of TGK-1 PAO (TGKA.ME) is 21.50%.

The Cost of Debt of TGK-1 PAO (TGKA.ME) is 11.20%.

	Range	Selected
Cost of equity	20.50% - 22.50%	21.50%
Tax rate	19.70% - 21.10%	20.40%
Cost of debt	6.00% - 16.40%	11.20%
WACC	14.5% - 18.8%	16.6%

WACC

TGKA.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.4	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.50%	22.50%

Tax rate	19.70%	21.10%
Debt/Equity ratio	0.62	0.62
Cost of debt	6.00%	16.40%

After-tax WACC	14.5%	18.8%


Selected WACC	16.6%

TGKA.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 TGKA.ME:

cost_of_equity (21.50%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.4) + 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.