QIGD.QA WACC - Weighted Average Cost of Capital

The WACC of Qatari Investors Group QPSC (QIGD.QA) is 10.2%.

The Cost of Equity of Qatari Investors Group QPSC (QIGD.QA) is 13.45%.

The Cost of Debt of Qatari Investors Group QPSC (QIGD.QA) is 4.80%.

	Range	Selected
Cost of equity	11.80% - 15.10%	13.45%
Tax rate	2.90% - 3.50%	3.20%
Cost of debt	4.00% - 5.60%	4.80%
WACC	8.9% - 11.6%	10.2%

WACC

QIGD.QA WACC calculation

Category	Low	High

Long-term bond rate	5.0%	5.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.13	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.10%

Tax rate	2.90%	3.50%
Debt/Equity ratio	0.58	0.58
Cost of debt	4.00%	5.60%

After-tax WACC	8.9%	11.6%


Selected WACC	10.2%

QIGD.QA'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 QIGD.QA:

cost_of_equity (13.45%) = risk_free_rate (5.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.13) + 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.