YKEN.ME WACC - Weighted Average Cost of Capital
The WACC of Yakutskenergo PAO (YKEN.ME) is 10.2%.
| Range | Selected | |
| Cost of equity | 19.6% - 23.5% | 21.55% |
| Tax rate | 21.5% - 25.7% | 23.6% |
| Cost of debt | 4.0% - 17.3% | 10.65% |
| WACC | 5.8% - 14.6% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 15.8% | 16.3% |
| Equity market risk premium | 11.7% | 12.7% |
| Adjusted beta | 0.33 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 19.6% | 23.5% |
| Tax rate | 21.5% | 25.7% |
| Debt/Equity ratio | 5.18 | 5.18 |
| Cost of debt | 4.0% | 17.3% |
| After-tax WACC | 5.8% | 14.6% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| YKEN.ME | Yakutskenergo PAO | 5.18 | 0.79 | 0.16 |
| Low | High | |
| Unlevered beta | 0.16 | 0.16 |
| Relevered beta | 0 | 0.3 |
| Adjusted relevered beta | 0.33 | 0.53 |
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 (21.55%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.33) + 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.