The WACC of Qualitech PCL (QLT.BK) is 8.0%.
Range | Selected | |
Cost of equity | 6.9% - 9.4% | 8.15% |
Tax rate | 1.4% - 1.6% | 1.5% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 6.7% - 9.2% | 8.0% |
Category | Low | High |
Long-term bond rate | 2.6% | 3.1% |
Equity market risk premium | 7.4% | 8.4% |
Adjusted beta | 0.59 | 0.7 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.9% | 9.4% |
Tax rate | 1.4% | 1.6% |
Debt/Equity ratio | 0.08 | 0.08 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 6.7% | 9.2% |
Selected WACC | 8.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
QLT.BK | Qualitech PCL | 0.08 | 0.39 | 0.37 |
1586.HK | China Leon Inspection Holding Ltd | 0.09 | -0.04 | -0.04 |
2236.HK | Wison Engineering Services Co Ltd | 1.02 | 1.02 | 0.51 |
600968.SS | CNOOC Energy Technology & Services Ltd | 0.1 | 0.62 | 0.57 |
603698.SS | Changzheng Engineering Co Ltd | 0.19 | 0.79 | 0.67 |
BARAKAH.KL | Barakah Offshore Petroleum Bhd | 1.32 | 0.79 | 0.34 |
BLH.SI | Hai Leck Holdings Ltd | 0.03 | -0.16 | -0.15 |
DU4.SI | Mermaid Maritime PCL | 1.02 | 1.02 | 0.51 |
SR.BK | Siamraj PCL | 3.29 | 0.71 | 0.17 |
WOR.AX | Worley Ltd | 0.3 | 1.01 | 0.78 |
Low | High | |
Unlevered beta | 0.36 | 0.51 |
Relevered beta | 0.39 | 0.55 |
Adjusted relevered beta | 0.59 | 0.7 |
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 QLT.BK:
cost_of_equity (8.15%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (0.59) + 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.