UKUZ.ME WACC - Weighted Average Cost of Capital

The WACC of UK Yuzhnyi Kuzbass PAO (UKUZ.ME) is 20.1%.

The Cost of Equity of UK Yuzhnyi Kuzbass PAO (UKUZ.ME) is 27.40%.

The Cost of Debt of UK Yuzhnyi Kuzbass PAO (UKUZ.ME) is 13.95%.

	Range	Selected
Cost of equity	25.30% - 29.50%	27.40%
Tax rate	6.00% - 7.50%	6.75%
Cost of debt	8.50% - 19.40%	13.95%
WACC	16.6% - 23.7%	20.1%

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	0.82	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.30%	29.50%

Tax rate	6.00%	7.50%
Debt/Equity ratio	1.02	1.02
Cost of debt	8.50%	19.40%

After-tax WACC	16.6%	23.7%


Selected WACC	20.1%

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 (27.40%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.82) + 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.