PQG
PQ Group Holdings Inc
Price:  
15.65 
USD
Volume:  
345,045.00
United States | Chemicals
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PQG WACC - Weighted Average Cost of Capital

The WACC of PQ Group Holdings Inc (PQG) is 8.5%.

The Cost of Equity of PQ Group Holdings Inc (PQG) is 9.55%.
The Cost of Debt of PQ Group Holdings Inc (PQG) is 9.25%.

Range Selected
Cost of equity 8.30% - 10.80% 9.55%
Tax rate 21.30% - 27.90% 24.60%
Cost of debt 5.40% - 13.10% 9.25%
WACC 6.7% - 10.3% 8.5%
WACC

PQG WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 1.22 1.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 10.80%
Tax rate 21.30% 27.90%
Debt/Equity ratio 0.65 0.65
Cost of debt 5.40% 13.10%
After-tax WACC 6.7% 10.3%
Selected WACC 8.5%

PQG'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 PQG:

cost_of_equity (9.55%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.22) + 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.