TGKB.ME WACC - Weighted Average Cost of Capital

The WACC of Territorial'naya Generiruyushchaya Kompaniya No2 PAO (TGKB.ME) is 17.3%.

The Cost of Equity of Territorial'naya Generiruyushchaya Kompaniya No2 PAO (TGKB.ME) is 20.35%.

The Cost of Debt of Territorial'naya Generiruyushchaya Kompaniya No2 PAO (TGKB.ME) is 14.80%.

	Range	Selected
Cost of equity	19.40% - 21.30%	20.35%
Tax rate	14.40% - 19.50%	16.95%
Cost of debt	12.60% - 17.00%	14.80%
WACC	16.1% - 18.4%	17.3%

WACC

TGKB.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.31	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.40%	21.30%

Tax rate	14.40%	19.50%
Debt/Equity ratio	0.62	0.62
Cost of debt	12.60%	17.00%

After-tax WACC	16.1%	18.4%


Selected WACC	17.3%

TGKB.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 TGKB.ME:

cost_of_equity (20.35%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.31) + 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.