Quotient Ltd (QTNT) WACC Analysis

As of May 27, 2025, Quotient Ltd (QTNT) carries a Weighted Average Cost of Capital (WACC) of 5.7%. WACC reflects the blended rate Quotient Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 76.1%, the cost of debt is 5.0%, and the effective tax rate is 0.6%.

Breakdown of WACC Components

• Long-term bond rate: 4.2% – 4.7%
• Equity market risk premium: 5.0% – 6.0%
• Adjusted beta: 14.39 – 35.09
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 191.32

What It Means for Investors

With a selected WACC of 5.7%, Quotient Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.