QUAL.AT WACC - Weighted Average Cost of Capital
The WACC of Quality and Reliability SA (QUAL.AT) is 11.3%.
| Range | Selected | |
| Cost of equity | 9.6% - 14.3% | 11.95% |
| Tax rate | 23.8% - 41.0% | 32.4% |
| Cost of debt | 11.8% - 12.2% | 12% |
| WACC | 9.5% - 13.1% | 11.3% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 0.72 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 14.3% |
| Tax rate | 23.8% | 41.0% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 11.8% | 12.2% |
| After-tax WACC | 9.5% | 13.1% |
| Selected WACC | 11.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| QUAL.AT | Quality and Reliability SA | 0.2 | 1.08 | 0.95 |
| ARDYZ.IS | Ard Grup Bilisim Teknolojileri AS | 0.01 | 0.94 | 0.93 |
| BPX.WA | BPX SA | 0.02 | -1.08 | -1.06 |
| IAG.WA | Satis Group SA | 0.04 | 1.02 | 1 |
| KFEIN.IS | Kafein Yazilim Hizmetleri Ticaret AS | 0.05 | 0.92 | 0.89 |
| NRST.MI | Neurosoft Software Production SA | 0.17 | -0.22 | -0.19 |
| SME.WA | Simple SA | 0.07 | 0.13 | 0.13 |
| SMRT.L | Smartspace Software PLC | 0.02 | 1.08 | 1.06 |
| SPA.L | 1Spatial PLC | 0.11 | 0.35 | 0.33 |
| SPR.WA | Spyrosoft SA | 0.04 | 0.65 | 0.63 |
| Low | High | |
| Unlevered beta | 0.51 | 0.91 |
| Relevered beta | 0.58 | 1.03 |
| Adjusted relevered beta | 0.72 | 1.02 |
QUAL.AT'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 QUAL.AT:
cost_of_equity (11.95%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.72) + 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.