GWCS.QA WACC - Weighted Average Cost of Capital

The WACC of Gulf Warehousing Company QPSC (GWCS.QA) is 9.7%.

The Cost of Equity of Gulf Warehousing Company QPSC (GWCS.QA) is 13.65%.

The Cost of Debt of Gulf Warehousing Company QPSC (GWCS.QA) is 6.50%.

	Range	Selected
Cost of equity	10.10% - 17.20%	13.65%
Tax rate	0.90% - 1.00%	0.95%
Cost of debt	4.80% - 8.20%	6.50%
WACC	7.2% - 12.2%	9.7%

WACC

GWCS.QA WACC calculation

Category	Low	High

Long-term bond rate	5.0%	5.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.86	1.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	17.20%

Tax rate	0.90%	1.00%
Debt/Equity ratio	1.22	1.22
Cost of debt	4.80%	8.20%

After-tax WACC	7.2%	12.2%


Selected WACC	9.7%

GWCS.QA'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 GWCS.QA:

cost_of_equity (13.65%) = risk_free_rate (5.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.86) + 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.