GWCS.QA WACC - Weighted Average Cost of Capital

The WACC of Gulf Warehousing Company QPSC (GWCS.QA) is 10.7%.

The Cost of Equity of Gulf Warehousing Company QPSC (GWCS.QA) is 17.15%.

The Cost of Debt of Gulf Warehousing Company QPSC (GWCS.QA) is 6.70%.

	Range	Selected
Cost of equity	14.60% - 19.70%	17.15%
Tax rate	0.90% - 1.00%	0.95%
Cost of debt	4.80% - 8.60%	6.70%
WACC	8.6% - 12.9%	10.7%

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	1.61	1.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	19.70%

Tax rate	0.90%	1.00%
Debt/Equity ratio	1.59	1.59
Cost of debt	4.80%	8.60%

After-tax WACC	8.6%	12.9%


Selected WACC	10.7%

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 (17.15%) = risk_free_rate (5.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.61) + 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.