XIA.V WACC - Weighted Average Cost of Capital
The WACC of Xiana Mining Inc (XIA.V) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.5% - 9.9% | 7.7% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.2% - 6.3% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.49 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 9.9% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 3.03 | 3.03 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.2% | 6.3% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XIA.V | Xiana Mining Inc | 3.03 | 0.44 | 0.14 |
| GBRIF | Golden Band Resources Inc | 667.72 | 3.55 | 0.01 |
| GG.V | Galane Gold Ltd | 0.15 | 1.22 | 1.1 |
| GGA.TO | Goldgroup Mining Inc | 2.61 | -0.76 | -0.26 |
| IMII | Inception Mining Inc | 0.8 | 1.62 | 1.02 |
| MGZ.H.V | Mangazeya Mining Ltd | 5.31 | -0.14 | -0.03 |
| MIRL.CN | Minera IRL Ltd | 15.17 | -0.43 | -0.04 |
| MMY.V | Monument Mining Ltd | 0 | 1.02 | 1.01 |
| PGDC.V | Patagonia Gold Corp | 1.71 | 2.4 | 1.07 |
| WMTN | WestMountain Gold Inc | 45.99 | -2.3 | -0.07 |
| Low | High | |
| Unlevered beta | -0.01 | 0.49 |
| Relevered beta | 0.24 | 0.99 |
| Adjusted relevered beta | 0.49 | 0.99 |
XIA.V'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 XIA.V:
cost_of_equity (7.70%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.49) + 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.