QLIS WACC - Weighted Average Cost of Capital
The WACC of Qualis Innovations Inc (QLIS) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.5% | 6.45% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 7.5% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.5% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 7.5% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| QLIS | Qualis Innovations Inc | 0.01 | -1.19 | -1.19 |
| AWI.V | Advent-AWI Holdings Inc | 0.1 | 0.72 | 0.67 |
| CONN | Conn's Inc | 408.51 | 0.8 | 0 |
| GME | GameStop Corp | 0 | 0.35 | 0.35 |
| HGGGQ | hhgregg Inc | 709.92 | -0.43 | 0 |
| IGOI | iGO Inc | 0.92 | 0.89 | 0.53 |
| ISHI | Islet Holdings Inc | 0.01 | 0.2 | 0.2 |
| RCII | Rent-A-Center Inc | 0.92 | 1.81 | 1.09 |
| ROOT.TO | Roots Corp | 0.96 | 0.4 | 0.24 |
| Low | High | |
| Unlevered beta | 0.21 | 0.33 |
| Relevered beta | 0 | 0.21 |
| Adjusted relevered beta | 0.33 | 0.47 |
QLIS'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 QLIS:
cost_of_equity (6.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.