QNST WACC - Weighted Average Cost of Capital
The WACC of Quinstreet Inc (QNST) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.8% - 12.6% | 10.2% |
| Tax rate | 6.6% - 13.2% | 9.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 8.5% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.86 | 1.38 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 12.6% |
| Tax rate | 6.6% | 13.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 8.5% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| QNST | Quinstreet Inc | 1.06 | 1.08 | 0.55 |
| ADST | AdStar Inc | 0.01 | 0 | 0 |
| AUTO | Autoweb Inc | 1.85 | 2.07 | 0.77 |
| EQ.V | EQ Inc | 0.02 | -0.03 | -0.03 |
| FB | Meta Platforms Inc | 0 | 1.38 | 1.38 |
| GOOGL | Alphabet Inc | 0.01 | 0.96 | 0.96 |
| GSMG | Glory Star New Media Group Holdings Ltd | 0.11 | 0.46 | 0.42 |
| PROM | Propel Media Inc | 0.28 | -1.47 | -1.17 |
| SNAP | Snap Inc | 0.26 | 1.1 | 0.89 |
| Y.TO | Yellow Pages Ltd | 0.25 | 0.51 | 0.41 |
| ZI | ZoomInfo Technologies Inc | 0.35 | 1.66 | 1.26 |
| Low | High | |
| Unlevered beta | 0.42 | 0.77 |
| Relevered beta | 0.79 | 1.57 |
| Adjusted relevered beta | 0.86 | 1.38 |
QNST'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 QNST:
cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.86) + 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.