XLM.L WACC - Weighted Average Cost of Capital
The WACC of XLMedia PLC (XLM.L) is 7.8%.
| Range | Selected | |
| Cost of equity | 5.9% - 9.5% | 7.7% |
| Tax rate | 18.6% - 29.2% | 23.9% |
| Cost of debt | 7.0% - 14.4% | 10.7% |
| WACC | 5.8% - 9.8% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.31 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 9.5% |
| Tax rate | 18.6% | 29.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 14.4% |
| After-tax WACC | 5.8% | 9.8% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XLM.L | XLMedia PLC | 1.01 | 0.15 | 0.09 |
| ALALO.PA | Acheter Louer Fr SA | 6.3 | -1.99 | -0.36 |
| ALDNX.PA | Dnxcorp Se | 0.04 | 0.27 | 0.26 |
| BBSN.L | Brave Bison Group PLC | 0.04 | -0.28 | -0.27 |
| KAR.ST | Karnov Group AB (publ) | 0.23 | 0.33 | 0.28 |
| MYRK.DE | MyHammer Holding AG | 0.01 | 0.16 | 0.16 |
| OTMP.L | Onthemarket PLC | 0.01 | -0.88 | -0.87 |
| WEB.MI | Websolute SpA | 0.35 | 0.37 | 0.29 |
| YOC.DE | Yoc AG | 0.04 | 0.88 | 0.85 |
| AUTO | Autoweb Inc | 1.85 | 2.07 | 0.88 |
| PROM | Propel Media Inc | 0.3 | -1.43 | -1.18 |
| Low | High | |
| Unlevered beta | 0.09 | 0.26 |
| Relevered beta | -0.03 | 0.46 |
| Adjusted relevered beta | 0.31 | 0.64 |
XLM.L'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 XLM.L:
cost_of_equity (7.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.31) + 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.