Lojas Quero-Quero (BSP:LJQQ3) WACC %:14.55% (As of Jul. 21, 2026) — 60% Above Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
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BSP:LJQQ3 Lojas Quero-Quero SA BSP:LJQQ3
68 GF Score
Price R$1.14
GF Value R$2.90
Valuation Possible Value Trap
! 8 Warning Signs
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What is Lojas Quero-Quero WACC %?

Lojas Quero-Quero BSP:LJQQ3 -4.20% 68 WACC % is 14.55% as of Jul. 21, 2026, which is 60% above its 10-year median of 9.08. GuruFocus rates BSP:LJQQ3 with a GF Score™ of 68/100 and a GF Value™ of R$2.90 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,143 Retail - Cyclical companies, Lojas Quero-Quero ranks worse than 94.31% on this metric.

As of today (2026-07-21), Lojas Quero-Quero's weighted average cost of capital is 14.55%%. Lojas Quero-Quero's ROIC % is -2.56% (calculated using TTM income statement data). Lojas Quero-Quero earns returns that do not match up to its cost of capital. It will destroy value as it grows.

For a comprehensive WACC calculation, please access the WACC Calculator.


Lojas Quero-Quero  (BSP:LJQQ3) WACC % Explanation

Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Lojas Quero-Quero's weighted average cost of capital is 14.55%%. Lojas Quero-Quero's ROIC % is -2.56% (calculated using TTM income statement data). Lojas Quero-Quero earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.

2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.

3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.

4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.


Related Terms

Lojas Quero-Quero WACC % Historical Data

* Premium members only.

The historical data trend for Lojas Quero-Quero's WACC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Lojas Quero-Quero WACC % Chart

Lojas Quero-Quero Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
WACC %
Get a 7-Day Free Trial Premium Member Only 7.11 9.13 9.08 4.92 11.46

Lojas Quero-Quero Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.80 12.67 13.23 11.46 14.93

BSP:LJQQ3 vs CASY, WSM, DKS: WACC % Comparison

For the Specialty Retail subindustry, Lojas Quero-Quero's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lojas Quero-Quero WACC % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Lojas Quero-Quero's WACC % distribution charts can be found below:

* The bar in red indicates where Lojas Quero-Quero's WACC % falls into.


BSP:LJQQ3
68GF Score
Lojas Quero-Quero SA BSP:LJQQ3
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lojas Quero-Quero WACC % Calculation

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.

WACC=E/(E + D)*Cost of Equity+D/(E + D)*Cost of Debt*(1 - Tax Rate)

1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Lojas Quero-Quero's market capitalization (E) is R$235.886 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Lojas Quero-Quero's latest one-year quarterly average Book Value of Debt (D) is R$1061.743 Mil.
a) weight of equity = E / (E + D) = 235.886 / (235.886 + 1061.743) = 0.1818
b) weight of debt = D / (E + D) = 1061.743 / (235.886 + 1061.743) = 0.8182

2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.626%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Lojas Quero-Quero's beta is 2.3250.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.626% + 2.3250 * 6% = 18.576%

3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Lojas Quero-Quero's interest expense (positive number) was R$145.03 Mil. Its total Book Value of Debt (D) is R$1061.743 Mil.
Cost of Debt = 145.03 / 1061.743 = 13.6596%.

4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 7.481 / -185.027 = -4.04%, which is less than 0%. Therefore it's set to 0%.

Lojas Quero-Quero's Weighted Average Cost Of Capital (WACC) for Today is calculated as:

WACC=E / (E + D)*Cost of Equity+D / (E + D)*Cost of Debt*(1 - Tax Rate)
=0.1818*18.576%+0.8182*13.6596%*(1 - 0%)
=14.55%

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 14.55% mean?
Lojas Quero-Quero (BSP:LJQQ3) has a WACC % of 14.55% as of Jul. 21, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Lojas Quero-Quero and its competitors. This is 60% above median its historical median of 9.08. Over the past decade, Lojas Quero-Quero's WACC % has ranged from 4.92 to 14.57. According to the industry distribution chart, Lojas Quero-Quero ranks #1078 out of 1143 companies in the Retail - Cyclical industry, placing it in the top 94.3%.
Is Lojas Quero-Quero's WACC % too high?
Lojas Quero-Quero's current WACC % of 14.55% is 60% above median its 10-year median of 9.08. Over the past 10 years, this metric has ranged from a low of 4.92 to a high of 14.57. The Retail - Cyclical industry median WACC % is 7.52. Lojas Quero-Quero's value of 14.55% is 93.5% above this industry median. Based on the distribution chart, Lojas Quero-Quero ranks #1078 out of 1143 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Lojas Quero-Quero has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lojas Quero-Quero's WACC % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Lojas Quero-Quero ranks #1078 out of 1143 companies for WACC %. This places Lojas Quero-Quero in the lower half of its industry. The industry median WACC % is 7.52. Lojas Quero-Quero's value of 14.55% is 93.5% above this benchmark. Historically, Lojas Quero-Quero's own WACC % has ranged from 4.92 to 14.57 over the past decade. While the company's 10-year median is 9.08 vs. the industry median of 7.52, Lojas Quero-Quero has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.52, based on 1,143 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lojas Quero-Quero's current WACC % of 14.55% is 93.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Lojas Quero-Quero and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lojas Quero-Quero's current WACC % is 14.55%, which is 60% above median its own 10-year median of 9.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lojas Quero-Quero stock overvalued right now?
Based on GuruFocus' analysis, Lojas Quero-Quero (BSP:LJQQ3) is currently considered Possible Value Trap. The stock's GF Value™ is R$2.90, compared to a current price of R$1.14 — trading 60.7% below its estimated fair value. The current WACC % is 14.55%, which is 60% above median its 10-year median of 9.08 and 93.5% above the Retail - Cyclical industry median of 7.52. Lojas Quero-Quero's overall GF Score™ is 68/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Lojas Quero-Quero (BSP:LJQQ3), the current WACC % is 14.55% as of Jul. 21, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Lojas Quero-Quero (BSP:LJQQ3) Overvalued in 2026?

Based on GuruFocus' analysis, Lojas Quero-Quero stock appears to be undervalued. The current stock price of R$1.14 is trading 60.7% below its estimated GF Value™ of R$2.90. GuruFocus considers Lojas Quero-Quero to be Possible Value Trap.

Key valuation signals for BSP:LJQQ3:

  • WACC %: 14.55% (60% above median its 10-year median of 9.08)
  • GF Value™: R$2.90 vs. price of R$1.14 (60.7% below fair value)
  • GF Score™: 68/100 with 8 warning signs
  • Industry Position: 93.5% above the Retail - Cyclical median (#1078 of 1143)

No single metric tells the full story. See the BSP:LJQQ3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lojas Quero-Quero Business Description

Address Avenida General Flores da Cunha, 1943, Vila Cachoeirinha, Cachoeirinha, RS, BRA, 94910-003
Lojas Quero-Quero SA is mainly engaged in retail trade activities in general, offering building materials, household appliances and furniture, and related activities such as import, rendering of correspondent bank services and intermediation of extended warranty sales. It currently has stores distributed in the states of Rio Grande do Sul, Santa Cataria, Parana, Mato Grosso do Sul, and Sao Paulo, in addition to three distribution centers. The company has one operating segment, which consists of revenues obtained from retail activities, financial services, and credit cards on a segregated basis.
68GF Score

Get the complete analysis for BSP:LJQQ3

WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$1.14
Price
R$2.90
GF Value