XIGM.CN
Xigem Technologies Corp
Price:  
0.01 
CAD
Volume:  
33,470.00
Canada | N/A
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XIGM.CN WACC - Weighted Average Cost of Capital

The WACC of Xigem Technologies Corp (XIGM.CN) is 3.9%.

The Cost of Equity of Xigem Technologies Corp (XIGM.CN) is 2.75%.
The Cost of Debt of Xigem Technologies Corp (XIGM.CN) is 5.00%.

Range Selected
Cost of equity 2.40% - 3.10% 2.75%
Tax rate -% - 0.10% 0.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.1% - 3.7% 3.9%
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 -1.68 -1.68
Additional risk adjustments 8.5% 9.0%
Cost of equity 2.40% 3.10%
Tax rate -% 0.10%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 4.1% 3.7%
Selected WACC 3.9%

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 (2.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-1.68) + risk_adjustments (8.75%)

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