QRT.L WACC - Weighted Average Cost of Capital

The WACC of Quarto Group Inc (QRT.L) is 8.3%.

The Cost of Equity of Quarto Group Inc (QRT.L) is 9.80%.

The Cost of Debt of Quarto Group Inc (QRT.L) is 4.30%.

	Range	Selected
Cost of equity	7.30% - 12.30%	9.80%
Tax rate	27.90% - 30.20%	29.05%
Cost of debt	4.00% - 4.60%	4.30%
WACC	6.3% - 10.3%	8.3%

WACC

QRT.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.55	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	12.30%

Tax rate	27.90%	30.20%
Debt/Equity ratio	0.28	0.28
Cost of debt	4.00%	4.60%

After-tax WACC	6.3%	10.3%


Selected WACC	8.3%

QRT.L'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 QRT.L:

cost_of_equity (9.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * 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.