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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Quest Patent ResearchQPRC 29 WACC % is 15.35% as of Aug. 01, 2026, which is 6% below its 10-year median of 16.36. GuruFocus rates QPRC with a GF Score™ of 29/100. The stock has 3 warning signs investors should review. Among 1,114 Business Services companies, Quest Patent Research ranks worse than 90.84% on this metric.
As of today (2026-08-01), Quest Patent Research's weighted average cost of capital is 15.35%%. Quest Patent Research's ROIC % is -32.80% (calculated using TTM income statement data).
Quest Patent Research 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.
Quest Patent Research (OTCPK:QPRC) 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, Quest Patent Research's weighted average cost of capital is 15.35%%. Quest Patent Research's ROIC % is -32.80% (calculated using TTM income statement data).
Quest Patent Research 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.
* 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.
For the Specialty Business Services subindustry, Quest Patent Research'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.
Quest Patent Research WACC % vs Business Services Industry
For the Business Services industry and Industrials sector, Quest Patent Research's WACC % distribution charts can be found below:
* The bar in red indicates where Quest Patent Research's WACC % falls into.
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, Quest Patent Research's market capitalization (E) is $3.997 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, Quest Patent Research's latest one-year quarterly average Book Value of Debt (D) is $8.0536 Mil.
a) weight of equity = E / (E + D) = 3.997 / (3.997 + 8.0536) = 0.3317
b) weight of debt = D / (E + D) = 8.0536 / (3.997 + 8.0536) = 0.6683
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 4.718%. 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. Quest Patent Research's beta is 3.9538.
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 = 4.718% + 3.9538 * 6% = 28.4408%
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, Quest Patent Research's interest expense (positive number) was $0.713 Mil. Its total Book Value of Debt (D) is $8.0536 Mil.
Cost of Debt = 0.713 / 8.0536 = 8.8532%.
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 = 0 / -10.601 = 0%.
Quest Patent Research'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)
=
0.3317
*
28.4408%
+
0.6683
*
8.8532%
*
(1 - 0%)
=
15.35%
* 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.
Quest Patent Research (QPRC) has a WACC % of 15.35% as of Aug. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Quest Patent Research and its competitors. This is near median its historical median of 16.36. According to the industry distribution chart, Quest Patent Research ranks #1012 out of 1114 companies in the Business Services industry, placing it in the top 90.8%.
Is Quest Patent Research's WACC % too high?
Quest Patent Research's current WACC % of 15.35% is near median its 10-year median of 16.36. The Business Services industry median WACC % is 7.23. Quest Patent Research's value of 15.35% is 112.3% above this industry median. Based on the distribution chart, Quest Patent Research ranks #1012 out of 1114 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Quest Patent Research has a GF Score™ of 29/100, reflecting its overall financial health beyond just this single metric.
How does Quest Patent Research's WACC % compare to YYGH and JFIL?
According to the Business Services industry distribution chart, Quest Patent Research ranks #1012 out of 1114 companies for WACC %. This places Quest Patent Research in the lower half of its industry. The industry median WACC % is 7.23. Quest Patent Research's value of 15.35% is 112.3% above this benchmark. While the company's 10-year median is 16.36 vs. the industry median of 7.23, Quest Patent Research 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 Business Services company?
The median WACC % among Business Services companies is 7.23, based on 1,114 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. Quest Patent Research's current WACC % of 15.35% is 112.3% 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 Quest Patent Research and its competitors. For the Business Services industry, the median WACC % is 7.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quest Patent Research's current WACC % is 15.35%, which is near median its own 10-year median of 16.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quest Patent Research stock overvalued right now?
Quest Patent Research (QPRC) has a current WACC % of 15.35%. The current WACC % is 15.35%, which is near median its 10-year median of 16.36 and 112.3% above the Business Services industry median of 7.23. Quest Patent Research's overall GF Score™ is 29/100 with 3 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 Quest Patent Research (QPRC), the current WACC % is 15.35% as of Aug. 01, 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.
Quest Patent Research Corp is an intellectual property asset management company. The company is engaged in the development, acquisition, licensing, and enforcement of intellectual property rights. It owns or controls multiple intellectual property portfolios and seeks to generate revenue mainly through patent licensing, often as part of litigation settlements related to the enforcement of its intellectual property rights.
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