IRAO.ME WACC - Weighted Average Cost of Capital

The WACC of Inter RAO YEES PAO (IRAO.ME) is 19.6%.

The Cost of Equity of Inter RAO YEES PAO (IRAO.ME) is 21.85%.

The Cost of Debt of Inter RAO YEES PAO (IRAO.ME) is 10.20%.

	Range	Selected
Cost of equity	20.50% - 23.20%	21.85%
Tax rate	19.60% - 20.50%	20.05%
Cost of debt	4.00% - 16.40%	10.20%
WACC	17.7% - 21.5%	19.6%

WACC

IRAO.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.4	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.50%	23.20%

Tax rate	19.60%	20.50%
Debt/Equity ratio	0.19	0.19
Cost of debt	4.00%	16.40%

After-tax WACC	17.7%	21.5%


Selected WACC	19.6%

IRAO.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 IRAO.ME:

cost_of_equity (21.85%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.4) + 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.