QIMD.QA WACC - Weighted Average Cost of Capital
The WACC of Qatar Industrial Manufacturing Company QPSC (QIMD.QA) is 8.1%.
| Range | Selected | |
| Cost of equity | 11.1% - 15.0% | 13.05% |
| Tax rate | 10.0% - 10.0% | 10% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 8.9% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 5.0% | 5.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.01 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.1% | 15.0% |
| Tax rate | 10.0% | 10.0% |
| Debt/Equity ratio | 1.36 | 1.36 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 8.9% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| QIMD.QA | Qatar Industrial Manufacturing Company QPSC | 1.36 | 0.5 | 0.22 |
| 1323.HK | Huasheng International Holding Ltd | 2.63 | 0.73 | 0.22 |
| 532485.BO | Balmer Lawrie Investments Ltd | 0.06 | 0.77 | 0.73 |
| AHCS.QA | Aamal Company QPSC | 0.08 | 0.86 | 0.8 |
| BALMLAWRIE.NS | Balmer Lawrie and Company Ltd | 0.03 | 1.87 | 1.82 |
| DLG.VN | Duc Long Gia Lai Group JSC | 3.4 | 1.28 | 0.32 |
| GILLANDERS.NS | Gillanders Arbuthnot & Co Ltd | 0.55 | 0 | 0 |
| IQCD.QA | Industries Qatar QPSC | 0.01 | 0.83 | 0.83 |
| KFIMA.KL | Kumpulan Fima Bhd | 0.56 | 0.86 | 0.58 |
| PMS.VN | Petroleum Mechanical JSC | 0.16 | 0.63 | 0.55 |
| Low | High | |
| Unlevered beta | 0.45 | 0.64 |
| Relevered beta | 1.01 | 1.42 |
| Adjusted relevered beta | 1.01 | 1.28 |
QIMD.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 QIMD.QA:
cost_of_equity (13.05%) = risk_free_rate (5.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.01) + 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.