XIGM.CN
Xigem Technologies Corp
Price:  
0.02 
CAD
Volume:  
110,300.00
Canada | N/A
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XIGM.CN WACC - Weighted Average Cost of Capital

The WACC of Xigem Technologies Corp (XIGM.CN) is 6.2%.

The Cost of Equity of Xigem Technologies Corp (XIGM.CN) is 5.45%.
The Cost of Debt of Xigem Technologies Corp (XIGM.CN) is 7.00%.

Range Selected
Cost of equity 5.10% - 5.80% 5.45%
Tax rate 0.10% - 0.20% 0.15%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.1% - 6.4% 6.2%
WACC

XIGM.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -0.3 -0.3
Additional risk adjustments 3.5% 4.0%
Cost of equity 5.10% 5.80%
Tax rate 0.10% 0.20%
Debt/Equity ratio 1 1
Cost of debt 7.00% 7.00%
After-tax WACC 6.1% 6.4%
Selected WACC 6.2%

XIGM.CN'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 XIGM.CN:

cost_of_equity (5.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-0.3) + risk_adjustments (3.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.