VGSB.ME WACC - Weighted Average Cost of Capital
The WACC of Volgogradenergosbyt PAO (VGSB.ME) is 15.7%.
| Range | Selected | |
| Cost of equity | 16.0% - 18.2% | 17.1% |
| Tax rate | 21.6% - 24.9% | 23.25% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 14.7% - 16.6% | 15.7% |
| Category | Low | High |
| Long-term bond rate | 11.6% | 12.1% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.63 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.0% | 18.2% |
| Tax rate | 21.6% | 24.9% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 14.7% | 16.6% |
| Selected WACC | 15.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VGSB.ME | Volgogradenergosbyt PAO | 0.14 | 0.21 | 0.19 |
| KTSB.ME | Kostromskaya Sbytovaya Kompaniya PAO | 0.49 | 0.08 | 0.06 |
| RTSB.ME | TNS Energo Rostov-Na-Donu PAO | 1.16 | 0.3 | 0.16 |
| SARE.ME | Saratovenergo PAO | 0.74 | -1.3 | -0.83 |
| STSB.ME | Stavropol'energosbyt PAO | 1.23 | 0.07 | 0.04 |
| TASB.ME | Tambovskaya Energosbytovaya Kompaniya PAO | 0 | 0.24 | 0.24 |
| TORS.ME | Tomskaya Raspredelitel'naya Kompaniya PAO | 0.11 | 0 | 0 |
| VRSB.ME | TNS Energo Voronezh PAO | 1.13 | 0.04 | 0.02 |
| YKEN.ME | Yakutskenergo PAO | 5.18 | 0.79 | 0.16 |
| YRSB.ME | TNS Energo Yaroslavl PAO | 0.05 | 0.09 | 0.09 |
| Low | High | |
| Unlevered beta | 0.05 | 0.12 |
| Relevered beta | 0.45 | 0.55 |
| Adjusted relevered beta | 0.63 | 0.7 |
VGSB.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 VGSB.ME:
cost_of_equity (17.10%) = risk_free_rate (11.85%) + equity_risk_premium (7.40%) * adjusted_beta (0.63) + 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.