TNSE.ME WACC - Weighted Average Cost of Capital

The WACC of GK TNS Energo PAO (TNSE.ME) is 20.6%.

The Cost of Equity of GK TNS Energo PAO (TNSE.ME) is 20.80%.

The Cost of Debt of GK TNS Energo PAO (TNSE.ME) is 14.25%.

	Range	Selected
Cost of equity	19.80% - 21.80%	20.80%
Tax rate	17.10% - 22.70%	19.90%
Cost of debt	7.00% - 21.50%	14.25%
WACC	19.5% - 21.7%	20.6%

WACC

TNSE.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.34	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.80%	21.80%

Tax rate	17.10%	22.70%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.00%	21.50%

After-tax WACC	19.5%	21.7%


Selected WACC	20.6%

TNSE.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 TNSE.ME:

cost_of_equity (20.80%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.34) + 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.