QUAL.AT WACC - Weighted Average Cost of Capital

The WACC of Quality and Reliability SA (QUAL.AT) is 11.3%.

The Cost of Equity of Quality and Reliability SA (QUAL.AT) is 11.95%.

The Cost of Debt of Quality and Reliability SA (QUAL.AT) is 12.00%.

	Range	Selected
Cost of equity	9.60% - 14.30%	11.95%
Tax rate	23.80% - 41.00%	32.40%
Cost of debt	11.80% - 12.20%	12.00%
WACC	9.5% - 13.1%	11.3%

WACC

QUAL.AT WACC calculation

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	9.60%	14.30%

Tax rate	23.80%	41.00%
Debt/Equity ratio	0.2	0.2
Cost of debt	11.80%	12.20%

After-tax WACC	9.5%	13.1%


Selected WACC	11.3%

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.