BRQS WACC - Weighted Average Cost of Capital
The WACC of Borqs Technologies Inc (BRQS) is 8.8%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.3% | 7.65% |
| Tax rate | 1.0% - 1.8% | 1.4% |
| Cost of debt | 7.0% - 16.1% | 11.55% |
| WACC | 6.3% - 11.3% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.67 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.3% |
| Tax rate | 1.0% | 1.8% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 7.0% | 16.1% |
| After-tax WACC | 6.3% | 11.3% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BRQS | Borqs Technologies Inc | 0.46 | 1.39 | 0.95 |
| ALOT | AstroNova Inc | 0.67 | 0.71 | 0.43 |
| AVID | Avid Technology Inc | 0.15 | 1.16 | 1 |
| GPTX | Global Payment Technologies Inc | 50893.55 | 0 | 0 |
| JRVS | iMine Corp | 0.01 | 3.55 | 3.49 |
| SCT.V | Skychain Technologies Inc | 0.95 | 0.62 | 0.32 |
| SONM | Sonim Technologies Inc | 0.17 | 0.03 | 0.02 |
| XRX | Xerox Holdings Corp | 4.81 | 1.7 | 0.3 |
| TECH.OL | Techstep ASA | 0.41 | 0.08 | 0.06 |
| 3396.HK | Legend Holdings Corp | 6.94 | 1.67 | 0.21 |
| Low | High | |
| Unlevered beta | 0.26 | 0.36 |
| Relevered beta | 0.51 | 0.96 |
| Adjusted relevered beta | 0.67 | 0.97 |
BRQS'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 BRQS:
cost_of_equity (7.65%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.67) + 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.