TGKN.ME WACC - Weighted Average Cost of Capital

The WACC of Territorial'naya Generiruyushchaya Kompaniya No 14 PAO (TGKN.ME) is 19.7%.

The Cost of Equity of Territorial'naya Generiruyushchaya Kompaniya No 14 PAO (TGKN.ME) is 20.90%.

The Cost of Debt of Territorial'naya Generiruyushchaya Kompaniya No 14 PAO (TGKN.ME) is 24.45%.

	Range	Selected
Cost of equity	20.10% - 21.70%	20.90%
Tax rate	32.90% - 33.40%	33.15%
Cost of debt	13.10% - 35.80%	24.45%
WACC	17.1% - 22.3%	19.7%

WACC

TGKN.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.37	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.10%	21.70%

Tax rate	32.90%	33.40%
Debt/Equity ratio	0.37	0.37
Cost of debt	13.10%	35.80%

After-tax WACC	17.1%	22.3%


Selected WACC	19.7%

TGKN.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 TGKN.ME:

cost_of_equity (20.90%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.37) + 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.