QUEST.AT WACC - Weighted Average Cost of Capital

The WACC of Quest Holdings SA (QUEST.AT) is 9.1%.

The Cost of Equity of Quest Holdings SA (QUEST.AT) is 9.75%.

The Cost of Debt of Quest Holdings SA (QUEST.AT) is 6.40%.

	Range	Selected
Cost of equity	8.70% - 10.80%	9.75%
Tax rate	23.20% - 23.40%	23.30%
Cost of debt	4.50% - 8.30%	6.40%
WACC	8.0% - 10.2%	9.1%

WACC

QUEST.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.61	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	10.80%

Tax rate	23.20%	23.40%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.50%	8.30%

After-tax WACC	8.0%	10.2%


Selected WACC	9.1%

QUEST.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 QUEST.AT:

cost_of_equity (9.75%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.61) + 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.