QUESS.NS WACC - Weighted Average Cost of Capital

The WACC of Quess Corp Ltd (QUESS.NS) is 12.1%.

The Cost of Equity of Quess Corp Ltd (QUESS.NS) is 13.75%.

The Cost of Debt of Quess Corp Ltd (QUESS.NS) is 6.45%.

	Range	Selected
Cost of equity	12.00% - 15.50%	13.75%
Tax rate	16.90% - 24.90%	20.90%
Cost of debt	5.40% - 7.50%	6.45%
WACC	10.6% - 13.6%	12.1%

WACC

QUESS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.62	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	15.50%

Tax rate	16.90%	24.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	5.40%	7.50%

After-tax WACC	10.6%	13.6%


Selected WACC	12.1%

QUESS.NS'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 QUESS.NS:

cost_of_equity (13.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.62) + 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.