UKUZ.ME WACC - Weighted Average Cost of Capital

The WACC of UK Yuzhnyi Kuzbass PAO (UKUZ.ME) is 14.9%.

The Cost of Equity of UK Yuzhnyi Kuzbass PAO (UKUZ.ME) is 22.15%.

The Cost of Debt of UK Yuzhnyi Kuzbass PAO (UKUZ.ME) is 8.30%.

	Range	Selected
Cost of equity	20.00% - 24.30%	22.15%
Tax rate	5.30% - 6.80%	6.05%
Cost of debt	7.00% - 9.60%	8.30%
WACC	13.3% - 16.5%	14.9%

WACC

UKUZ.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.36	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.00%	24.30%

Tax rate	5.30%	6.80%
Debt/Equity ratio	1.02	1.02
Cost of debt	7.00%	9.60%

After-tax WACC	13.3%	16.5%


Selected WACC	14.9%

UKUZ.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 UKUZ.ME:

cost_of_equity (22.15%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.36) + 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.