QMCI WACC - Weighted Average Cost of Capital
The WACC of QuoteMedia Inc (QMCI) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.9% - 10.3% | 8.6% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.0% - 7.7% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.65 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 10.3% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.0% | 7.7% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| QMCI | QuoteMedia Inc | 1.15 | 0.34 | 0.19 |
| CBOE | Cboe Global Markets Inc | 0.06 | -0.39 | -0.38 |
| CIIX | ChineseInvestors.com Inc | 1119.23 | 1.05 | 0 |
| FDS | Factset Research Systems Inc | 0.08 | 0.58 | 0.55 |
| FNQ.CN | Fineqia International Inc | 0.25 | 1.46 | 1.24 |
| MSCI | MSCI Inc | 0.1 | 0.81 | 0.76 |
| OTCM | OTC Markets Group Inc | 1.14 | 0.03 | 0.02 |
| SPGI | S&P Global Inc | 0.07 | 0.89 | 0.84 |
| X.TO | TMX Group Ltd | 0.14 | 0.6 | 0.55 |
| AFN.L | ADVFN PLC | 0.01 | 0.45 | 0.45 |
| Low | High | |
| Unlevered beta | 0.34 | 0.55 |
| Relevered beta | 0.48 | 0.94 |
| Adjusted relevered beta | 0.65 | 0.96 |
QMCI'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 QMCI:
cost_of_equity (8.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.65) + 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.