RQIH.L
Randall & Quilter Investment Holdings Ltd
Price:  
0.08 
GBP
Volume:  
37,571,500.00
Bermuda | Insurance
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

RQIH.L WACC - Weighted Average Cost of Capital

The WACC of Randall & Quilter Investment Holdings Ltd (RQIH.L) is 6.9%.

The Cost of Equity of Randall & Quilter Investment Holdings Ltd (RQIH.L) is 2,776.90%.
The Cost of Debt of Randall & Quilter Investment Holdings Ltd (RQIH.L) is 5.00%.

Range Selected
Cost of equity 2,312.70% - 3,241.10% 2,776.90%
Tax rate 3.10% - 10.60% 6.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.7% - 7.1% 6.9%
WACC

RQIH.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 386.07 463.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 2,312.70% 3,241.10%
Tax rate 3.10% 10.60%
Debt/Equity ratio 1231.13 1231.13
Cost of debt 5.00% 5.00%
After-tax WACC 6.7% 7.1%
Selected WACC 6.9%

RQIH.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 RQIH.L:

cost_of_equity (2,776.90%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (386.07) + 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.