QIGD.QA WACC - Weighted Average Cost of Capital

The WACC of Qatari Investors Group QPSC (QIGD.QA) is 9.1%.

The Cost of Equity of Qatari Investors Group QPSC (QIGD.QA) is 10.80%.

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

	Range	Selected
Cost of equity	9.20% - 12.40%	10.80%
Tax rate	2.70% - 2.90%	2.80%
Cost of debt	4.00% - 5.60%	4.80%
WACC	7.7% - 10.5%	9.1%

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	0.7	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	12.40%

Tax rate	2.70%	2.90%
Debt/Equity ratio	0.38	0.38
Cost of debt	4.00%	5.60%

After-tax WACC	7.7%	10.5%


Selected WACC	9.1%

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 (10.80%) = risk_free_rate (5.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.7) + 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.