YKEN.ME WACC - Weighted Average Cost of Capital

The WACC of Yakutskenergo PAO (YKEN.ME) is 12.4%.

The Cost of Equity of Yakutskenergo PAO (YKEN.ME) is 21.60%.

The Cost of Debt of Yakutskenergo PAO (YKEN.ME) is 13.10%.

	Range	Selected
Cost of equity	19.50% - 23.70%	21.60%
Tax rate	16.50% - 19.90%	18.20%
Cost of debt	7.30% - 18.90%	13.10%
WACC	8.3% - 16.5%	12.4%

WACC

YKEN.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.32	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.50%	23.70%

Tax rate	16.50%	19.90%
Debt/Equity ratio	5.18	5.18
Cost of debt	7.30%	18.90%

After-tax WACC	8.3%	16.5%


Selected WACC	12.4%

YKEN.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 YKEN.ME:

cost_of_equity (21.60%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.32) + 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.