QUESS.NS WACC - Weighted Average Cost of Capital

The WACC of Quess Corp Ltd (QUESS.NS) is 12.2%.

The Cost of Equity of Quess Corp Ltd (QUESS.NS) is 12.40%.

The Cost of Debt of Quess Corp Ltd (QUESS.NS) is 6.20%.

	Range	Selected
Cost of equity	10.90% - 13.90%	12.40%
Tax rate	7.20% - 14.50%	10.85%
Cost of debt	4.80% - 7.60%	6.20%
WACC	10.7% - 13.7%	12.2%

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	0.48	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.90%

Tax rate	7.20%	14.50%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.80%	7.60%

After-tax WACC	10.7%	13.7%


Selected WACC	12.2%

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 (12.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + 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.