Quidel WACC - Weighted Average Cost of Capital

The WACC of Quidel Corp (QDEL) is 14.5%.

The Cost of Equity of Quidel Corp (QDEL) is 9.15%.

The Cost of Debt of Quidel Corp (QDEL) is 23.90%.

	Range	Selected
Cost of equity	7.60% - 10.70%	9.15%
Tax rate	22.00% - 23.40%	22.70%
Cost of debt	23.90% - 23.90%	23.90%
WACC	13.9% - 15.0%	14.5%

WACC

Quidel WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.82	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.70%

Tax rate	22.00%	23.40%
Debt/Equity ratio	1.34	1.34
Cost of debt	23.90%	23.90%

After-tax WACC	13.9%	15.0%


Selected WACC	14.5%

Quidel'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 Quidel:

cost_of_equity (9.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.82) + 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.