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Quest Resource Holding Corporation (QRHC) — WACC Analysis

WACC Breakdown

Quest Resource Holding Corporation (QRHC) has a weighted average cost of capital (WACC) of 13.0%. The cost of equity is 9.4%, derived from a beta of 0.98 and a risk-free rate of 5.2%. The after-tax cost of debt is 14.7%. The capital structure is 32.7% equity and 67.3% debt.

Interpretation

A WACC of 13.0% indicates that the market perceives Quest Resource Holding Corporation as higher-risk, requiring a greater return to compensate investors.

Investors can compare QRHC's WACC of 13.0% against industry peers to gauge its relative financing costs. A beta of 0.98 reflects the stock's volatility relative to the broader market.

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VALUATION

QRHC WACC: 12.99% for Quest Resource Holding Corporation

Current inputs imply a 9.39% cost of equity and a 14.73% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Quest Resource Holding Corporation Common Stock (QRHC) WACC Results
Weighted Average Cost of Capital
12.99%
Cost of Equity
9.39%
Risk-Free Rate5.22%
Beta0.98
Market Risk Premium4.23%
Cost of Debt
14.73%
Pre-Tax Cost of Debt14.73%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 32.70%($29.11M)
Debt: 67.30%($59.91M)
Equity Component
3.07%
32.70% × 9.39%
Debt Component
9.91%
67.30% × 14.73%

Quest Resource Holding Corporation (QRHC) WACC in context

Quest Resource Holding Corporation (QRHC) currently screens with an estimated WACC of 12.99%. That blends a 9.39% cost of equity, a 14.73% pre-tax cost of debt, and a 32.70% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What QRHC WACC implies

A 12.99% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates QRHC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.98 and equity accounts for 32.70% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.