QDEL
Quidel Corp
Price:  
28.82 
USD
Volume:  
1,665,283.00
United States | Health Care Equipment & Supplies
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Quidel WACC - Weighted Average Cost of Capital

The WACC of Quidel Corp (QDEL) is 14.3%.

The Cost of Equity of Quidel Corp (QDEL) is 8.90%.
The Cost of Debt of Quidel Corp (QDEL) is 23.90%.

Range Selected
Cost of equity 7.40% - 10.40% 8.90%
Tax rate 22.00% - 23.40% 22.70%
Cost of debt 23.90% - 23.90% 23.90%
WACC 13.7% - 14.8% 14.3%
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 0.78 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 10.40%
Tax rate 22.00% 23.40%
Debt/Equity ratio 1.27 1.27
Cost of debt 23.90% 23.90%
After-tax WACC 13.7% 14.8%
Selected WACC 14.3%

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 (8.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.78) + 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.