QDT.PA WACC - Weighted Average Cost of Capital
The WACC of Quadient SA (QDT.PA) is 6.7%.
| Range | Selected | |
| Cost of equity | 10.6% - 15.0% | 12.8% |
| Tax rate | 19.6% - 27.1% | 23.35% |
| Cost of debt | 4.0% - 4.7% | 4.35% |
| WACC | 5.8% - 7.6% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 1.31 | 1.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 15.0% |
| Tax rate | 19.6% | 27.1% |
| Debt/Equity ratio | 1.83 | 1.83 |
| Cost of debt | 4.0% | 4.7% |
| After-tax WACC | 5.8% | 7.6% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| QDT.PA | Quadient SA | 1.83 | 0.54 | 0.22 |
| ALMDG.PA | Mgi Digital Technology SA | 0.15 | 1.03 | 0.92 |
| ALTVO.PA | Evolis SA | 0.01 | 0.39 | 0.39 |
| ARTO.PA | Societe Industrielle et Financiere de l'Artois SA | 0.02 | 0.77 | 0.76 |
| ASTK.OL | Asetek A/S | 0.67 | 1.95 | 1.27 |
| DORO.ST | Doro AB | 0.02 | 0.29 | 0.29 |
| ETH.MI | Eurotech SpA | 0.86 | 0.6 | 0.36 |
| GUI.PA | Guillemot Corporation SA | 0.1 | 0.79 | 0.73 |
| TOBII.ST | Tobii AB | 0.54 | 1.18 | 0.83 |
| XAR.L | Xaar PLC | 0.08 | 1.28 | 1.21 |
| Low | High | |
| Unlevered beta | 0.59 | 0.79 |
| Relevered beta | 1.46 | 1.93 |
| Adjusted relevered beta | 1.31 | 1.62 |
QDT.PA'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 QDT.PA:
cost_of_equity (12.80%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (1.31) + 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.