TRMK.ME WACC - Weighted Average Cost of Capital

The WACC of Trubnaya Metallurgicheskaya Kompaniya PAO (TRMK.ME) is 19.5%.

The Cost of Equity of Trubnaya Metallurgicheskaya Kompaniya PAO (TRMK.ME) is 23.70%.

The Cost of Debt of Trubnaya Metallurgicheskaya Kompaniya PAO (TRMK.ME) is 22.30%.

	Range	Selected
Cost of equity	21.80% - 25.60%	23.70%
Tax rate	22.30% - 24.40%	23.35%
Cost of debt	11.80% - 32.80%	22.30%
WACC	14.0% - 25.1%	19.5%

WACC

TRMK.ME WACC calculation

Category	Low	High

Long-term bond rate	15.8%	16.3%
Equity market risk premium	11.7%	12.7%
Adjusted beta	0.52	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.80%	25.60%

Tax rate	22.30%	24.40%
Debt/Equity ratio	1.61	1.61
Cost of debt	11.80%	32.80%

After-tax WACC	14.0%	25.1%


Selected WACC	19.5%

TRMK.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 TRMK.ME:

cost_of_equity (23.70%) = risk_free_rate (16.05%) + equity_risk_premium (12.20%) * adjusted_beta (0.52) + 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.