XENA.TA
Xenia Venture Capital Ltd
Price:  
354.6 
ILA
Volume:  
42,474
Israel | Capital Markets

XENA.TA WACC - Weighted Average Cost of Capital

The WACC of Xenia Venture Capital Ltd (XENA.TA) is 8.6%.

The Cost of Equity of Xenia Venture Capital Ltd (XENA.TA) is 8.65%.
The Cost of Debt of Xenia Venture Capital Ltd (XENA.TA) is 5%.

RangeSelected
Cost of equity7.4% - 9.9%8.65%
Tax rate23.0% - 23.0%23%
Cost of debt5.0% - 5.0%5%
WACC7.3% - 9.9%8.6%
WACC

XENA.TA WACC calculation

CategoryLowHigh
Long-term bond rate3.0%3.5%
Equity market risk premium5.4%6.4%
Adjusted beta0.810.93
Additional risk adjustments0.0%0.5%
Cost of equity7.4%9.9%
Tax rate23.0%23.0%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC7.3%9.9%
Selected WACC8.6%

XENA.TA'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 XENA.TA:

cost_of_equity (8.65%) = risk_free_rate (3.25%) + equity_risk_premium (5.90%) * adjusted_beta (0.81) + 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.