QRS.WA WACC - Weighted Average Cost of Capital

The WACC of Quercus Towarzystwo Funduszy Inwestycyjnych SA (QRS.WA) is 10.1%.

The Cost of Equity of Quercus Towarzystwo Funduszy Inwestycyjnych SA (QRS.WA) is 10.10%.

The Cost of Debt of Quercus Towarzystwo Funduszy Inwestycyjnych SA (QRS.WA) is 5.05%.

	Range	Selected
Cost of equity	9.00% - 11.20%	10.10%
Tax rate	17.70% - 18.40%	18.05%
Cost of debt	4.00% - 6.10%	5.05%
WACC	9.0% - 11.1%	10.1%

WACC

QRS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.55	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.20%

Tax rate	17.70%	18.40%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	6.10%

After-tax WACC	9.0%	11.1%


Selected WACC	10.1%

QRS.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 QRS.WA:

cost_of_equity (10.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.55) + 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.