XIOR.BR WACC - Weighted Average Cost of Capital
The WACC of Xior Student Housing NV (XIOR.BR) is 6.7%.
| Range | Selected | |
| Cost of equity | 8.3% - 10.7% | 9.5% |
| Tax rate | 10.2% - 12.2% | 11.2% |
| Cost of debt | 4.0% - 6.0% | 5% |
| WACC | 5.7% - 7.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.91 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 10.7% |
| Tax rate | 10.2% | 12.2% |
| Debt/Equity ratio | 1.27 | 1.27 |
| Cost of debt | 4.0% | 6.0% |
| After-tax WACC | 5.7% | 7.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XIOR.BR | Xior Student Housing NV | 1.27 | 0.56 | 0.26 |
| CPINV.BR | Care Property Invest NV | 1.14 | 0.8 | 0.4 |
| CSH.L | Civitas Social Housing PLC | 0.76 | 0.83 | 0.5 |
| DIGS.L | GCP Student Living PLC | 0.31 | 1.19 | 0.93 |
| ESP.L | Empiric Student Property PLC | 0.6 | 0.7 | 0.46 |
| HLGYO.IS | Halk Gayrimenkul Yatirim Ortakligi AS | 0.21 | 1.11 | 0.93 |
| HOMI.BR | Home Invest Belgium SA | 1.03 | 0.23 | 0.12 |
| IRES.IR | Irish Residential Properties REIT PLC | 1.03 | 0.58 | 0.31 |
| PRSR.L | PRS Reit PLC | 0.66 | 0.66 | 0.41 |
| SOHO.L | Triple Point Social Housing REIT PLC | 0.97 | 0.84 | 0.45 |
| Low | High | |
| Unlevered beta | 0.41 | 0.45 |
| Relevered beta | 0.87 | 0.97 |
| Adjusted relevered beta | 0.91 | 0.98 |
XIOR.BR'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 XIOR.BR:
cost_of_equity (9.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.91) + 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.