QMCO
Quantum Corp
Price:  
11.32 
USD
Volume:  
336,267.00
United States | Technology Hardware, Storage & Peripherals
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Quantum WACC - Weighted Average Cost of Capital

The WACC of Quantum Corp (QMCO) is 8.8%.

The Cost of Equity of Quantum Corp (QMCO) is 9.95%.
The Cost of Debt of Quantum Corp (QMCO) is 8.35%.

Range Selected
Cost of equity 8.20% - 11.70% 9.95%
Tax rate 3.20% - 4.60% 3.90%
Cost of debt 4.90% - 11.80% 8.35%
WACC 6.2% - 11.5% 8.8%
WACC

Quantum WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.95 1.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 11.70%
Tax rate 3.20% 4.60%
Debt/Equity ratio 1.4 1.4
Cost of debt 4.90% 11.80%
After-tax WACC 6.2% 11.5%
Selected WACC 8.8%

Quantum'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 Quantum:

cost_of_equity (9.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.95) + 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.