MRKV.ME WACC - Weighted Average Cost of Capital

The WACC of Rosseti Volga PAO (MRKV.ME) is 18.3%.

The Cost of Equity of Rosseti Volga PAO (MRKV.ME) is 22.15%.

The Cost of Debt of Rosseti Volga PAO (MRKV.ME) is 16.00%.

	Range	Selected
Cost of equity	20.60% - 23.70%	22.15%
Tax rate	24.50% - 26.10%	25.30%
Cost of debt	15.30% - 16.70%	16.00%
WACC	17.3% - 19.4%	18.3%

WACC

MRKV.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.42	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.60%	23.70%

Tax rate	24.50%	26.10%
Debt/Equity ratio	0.6	0.6
Cost of debt	15.30%	16.70%

After-tax WACC	17.3%	19.4%


Selected WACC	18.3%

MRKV.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 MRKV.ME:

cost_of_equity (22.15%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.42) + 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.