QMCO
Quantum Corp
Price:  
9.15 
USD
Volume:  
1,031,737
United States | Technology Hardware, Storage & Peripherals

Quantum WACC - Weighted Average Cost of Capital

The WACC of Quantum Corp (QMCO) is 9.2%.

The Cost of Equity of Quantum Corp (QMCO) is 11.15%.
The Cost of Debt of Quantum Corp (QMCO) is 8.35%.

RangeSelected
Cost of equity9.7% - 12.6%11.15%
Tax rate3.2% - 4.6%3.9%
Cost of debt4.9% - 11.8%8.35%
WACC6.6% - 11.8%9.2%
WACC

Quantum WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1.271.37
Additional risk adjustments0.0%0.5%
Cost of equity9.7%12.6%
Tax rate3.2%4.6%
Debt/Equity ratio
1.721.72
Cost of debt4.9%11.8%
After-tax WACC6.6%11.8%
Selected WACC9.2%

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 (11.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.27) + 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.