XLM.L
XLMedia PLC
Price:  
8.00 
GBP
Volume:  
100,330,460.00
Jersey | Interactive Media & Services
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XLM.L WACC - Weighted Average Cost of Capital

The WACC of XLMedia PLC (XLM.L) is 7.8%.

The Cost of Equity of XLMedia PLC (XLM.L) is 7.70%.
The Cost of Debt of XLMedia PLC (XLM.L) is 10.70%.

Range Selected
Cost of equity 6.20% - 9.20% 7.70%
Tax rate 18.60% - 29.20% 23.90%
Cost of debt 7.00% - 14.40% 10.70%
WACC 6.0% - 9.7% 7.8%
WACC

XLM.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.37 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 9.20%
Tax rate 18.60% 29.20%
Debt/Equity ratio 1 1
Cost of debt 7.00% 14.40%
After-tax WACC 6.0% 9.7%
Selected WACC 7.8%

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 (0.37) + 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.