QCOM
Qualcomm Inc
Price:  
161.83 
USD
Volume:  
5,428,428.00
United States | Semiconductors & Semiconductor Equipment
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Qualcomm WACC - Weighted Average Cost of Capital

The WACC of Qualcomm Inc (QCOM) is 10.0%.

The Cost of Equity of Qualcomm Inc (QCOM) is 10.45%.
The Cost of Debt of Qualcomm Inc (QCOM) is 5.00%.

Range Selected
Cost of equity 9.10% - 11.80% 10.45%
Tax rate 6.30% - 10.30% 8.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.8% - 11.3% 10.0%
WACC

Qualcomm WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.15 1.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 11.80%
Tax rate 6.30% 10.30%
Debt/Equity ratio 0.08 0.08
Cost of debt 5.00% 5.00%
After-tax WACC 8.8% 11.3%
Selected WACC 10.0%

Qualcomm'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 Qualcomm:

cost_of_equity (10.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.15) + 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.