QXT.L WACC - Weighted Average Cost of Capital
The WACC of Quixant PLC (QXT.L) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.5% - 9.4% | 8.45% |
| Tax rate | 24.8% - 29.7% | 27.25% |
| Cost of debt | 5.2% - 5.3% | 5.25% |
| WACC | 7.4% - 9.3% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 4.4% | 4.9% |
| Equity market risk premium | 6.4% | 7.4% |
| Adjusted beta | 0.47 | 0.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 9.4% |
| Tax rate | 24.8% | 29.7% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.2% | 5.3% |
| After-tax WACC | 7.4% | 9.3% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| QXT.L | Quixant PLC | 0.02 | -0.45 | -0.44 |
| ACROUD.ST | Acroud AB | 1.21 | 0.59 | 0.31 |
| CENTR.AT | Centric Holdings SA | 0.27 | 0.61 | 0.51 |
| EMH.DE | Pferdewetten de AG | 0.06 | 0.35 | 0.33 |
| FCMC.PA | Fermiere du Casino Municipal Cannes SA | 0.22 | 0.2 | 0.17 |
| SFCA.PA | Societe Francaise de Casinos SA | 0.41 | 0.09 | 0.07 |
| SPO.L | Sportech PLC | 0.96 | 0.31 | 0.18 |
| WEB.L | Webis Holding PLC | 7.1 | -1.38 | -0.22 |
| AGS | PlayAGS Inc | 1.07 | 0.03 | 0.02 |
| FCNE | Four Corners Inc | 0.13 | 0.07 | 0.07 |
| Low | High | |
| Unlevered beta | 0.07 | 0.17 |
| Relevered beta | 0.21 | 0.31 |
| Adjusted relevered beta | 0.47 | 0.54 |
QXT.L'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 QXT.L:
cost_of_equity (8.45%) = risk_free_rate (4.65%) + equity_risk_premium (6.90%) * adjusted_beta (0.47) + 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.