QTA.V
Quaterra Resources Inc
Price:  
0.09 
CAD
Volume:  
45,490.00
Canada | Metals & Mining
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

QTA.V WACC - Weighted Average Cost of Capital

The WACC of Quaterra Resources Inc (QTA.V) is 7.1%.

The Cost of Equity of Quaterra Resources Inc (QTA.V) is 10.60%.
The Cost of Debt of Quaterra Resources Inc (QTA.V) is 5.00%.

Range Selected
Cost of equity 9.10% - 12.10% 10.60%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.4% - 7.9% 7.1%
WACC

QTA.V WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.7% 5.7%
Adjusted beta 1.25 1.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 12.10%
Tax rate 27.00% 27.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.4% 7.9%
Selected WACC 7.1%

QTA.V'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 QTA.V:

cost_of_equity (10.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (1.25) + 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.