QNT.WA WACC - Weighted Average Cost of Capital

The WACC of Quantum Software SA (QNT.WA) is 11.8%.

The Cost of Equity of Quantum Software SA (QNT.WA) is 12.20%.

The Cost of Debt of Quantum Software SA (QNT.WA) is 5.05%.

	Range	Selected
Cost of equity	10.40% - 14.00%	12.20%
Tax rate	5.70% - 8.50%	7.10%
Cost of debt	4.00% - 6.10%	5.05%
WACC	10.0% - 13.5%	11.8%

WACC

QNT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.77	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	14.00%

Tax rate	5.70%	8.50%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.00%	6.10%

After-tax WACC	10.0%	13.5%


Selected WACC	11.8%

QNT.WA'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 QNT.WA:

cost_of_equity (12.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.77) + 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.