QLTU.TA WACC - Weighted Average Cost of Capital

The WACC of Qualitau Ltd (QLTU.TA) is 9.1%.

The Cost of Equity of Qualitau Ltd (QLTU.TA) is 9.10%.

The Cost of Debt of Qualitau Ltd (QLTU.TA) is 4.75%.

	Range	Selected
Cost of equity	8.10% - 10.10%	9.10%
Tax rate	10.70% - 14.70%	12.70%
Cost of debt	4.10% - 5.40%	4.75%
WACC	8.1% - 10.1%	9.1%

WACC

QLTU.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.57	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	10.10%

Tax rate	10.70%	14.70%
Debt/Equity ratio	0	0
Cost of debt	4.10%	5.40%

After-tax WACC	8.1%	10.1%


Selected WACC	9.1%

QLTU.TA'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 QLTU.TA:

cost_of_equity (9.10%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (0.57) + 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.