QUIS.V WACC - Weighted Average Cost of Capital

The WACC of Quisitive Technology Solutions Inc (QUIS.V) is 12.7%.

The Cost of Equity of Quisitive Technology Solutions Inc (QUIS.V) is 11.50%.

The Cost of Debt of Quisitive Technology Solutions Inc (QUIS.V) is 15.25%.

	Range	Selected
Cost of equity	9.60% - 13.40%	11.50%
Tax rate	1.60% - 5.30%	3.45%
Cost of debt	9.60% - 20.90%	15.25%
WACC	9.5% - 15.8%	12.7%

WACC

QUIS.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.13	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	13.40%

Tax rate	1.60%	5.30%
Debt/Equity ratio	0.62	0.62
Cost of debt	9.60%	20.90%

After-tax WACC	9.5%	15.8%


Selected WACC	12.7%

QUIS.V'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 QUIS.V:

cost_of_equity (11.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.13) + 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.