XENA.TA WACC - Weighted Average Cost of Capital
The WACC of Xenia Venture Capital Ltd (XENA.TA) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.4% - 9.9% | 8.65% |
| Tax rate | 23.0% - 23.0% | 23% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.3% - 9.9% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 0.81 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 9.9% |
| Tax rate | 23.0% | 23.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.3% | 9.9% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XENA.TA | Xenia Venture Capital Ltd | 0.01 | 0.56 | 0.55 |
| 42T.SI | Trendlines Group Ltd | 0.17 | 0.14 | 0.12 |
| ANLT.TA | Analyst IMS Investment Management Services Ltd | 0.01 | 0.84 | 0.84 |
| AVC.AX | Auctus Investment Group Ltd | 0.05 | 0.17 | 0.16 |
| DCL.AX | Domacom Australia Ltd | 0.71 | 3.8 | 2.46 |
| ELDAV.TA | Eldav Investments Ltd | 0 | 0.46 | 0.46 |
| MAM.AX | Microequities Asset Management Group Ltd | 0.08 | 1.44 | 1.36 |
| MTDS.TA | Meitav Dash Investments Ltd | 2.63 | 0.88 | 0.29 |
| T55.SI | TIH Ltd | 0 | 0.22 | 0.22 |
| TNPV.TA | Technoplus Ventures Ltd | 0 | 0.55 | 0.55 |
| Low | High | |
| Unlevered beta | 0.39 | 0.55 |
| Relevered beta | 0.72 | 0.9 |
| Adjusted relevered beta | 0.81 | 0.93 |
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.