UWGN.ME
NPK OVK PAO
Price:  
56.10 
RUB
Volume:  
5,326,230.00
Russian Federation | Machinery
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UWGN.ME WACC - Weighted Average Cost of Capital

The WACC of NPK OVK PAO (UWGN.ME) is 23.3%.

The Cost of Equity of NPK OVK PAO (UWGN.ME) is 23.35%.
The Cost of Debt of NPK OVK PAO (UWGN.ME) is 12.80%.

Range Selected
Cost of equity 21.60% - 25.10% 23.35%
Tax rate 12.70% - 16.20% 14.45%
Cost of debt 9.20% - 16.40% 12.80%
WACC 21.5% - 25.1% 23.3%
WACC

UWGN.ME WACC calculation

Category Low High
Long-term bond rate 15.8% 16.3%
Equity market risk premium 11.7% 12.7%
Adjusted beta 0.49 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 21.60% 25.10%
Tax rate 12.70% 16.20%
Debt/Equity ratio 0 0
Cost of debt 9.20% 16.40%
After-tax WACC 21.5% 25.1%
Selected WACC 23.3%

UWGN.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 UWGN.ME:

cost_of_equity (23.35%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.49) + 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.