XNNHQ WACC - Weighted Average Cost of Capital
The WACC of Xenonics Holdings Inc (XNNHQ) is 7.2%.
| Range | Selected | |
| Cost of equity | 5.3% - 298.2% | 151.75% |
| Tax rate | 0.1% - 0.1% | 0.1% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.0% - 7.3% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.32 | 52.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 298.2% |
| Tax rate | 0.1% | 0.1% |
| Debt/Equity ratio | 886.24 | 886.24 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.0% | 7.3% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XNNHQ | Xenonics Holdings Inc | 886.24 | 142.6 | 0.16 |
| AERG | Applied Energetics Inc | 0 | 0.22 | 0.22 |
| AIRI | Air Industries Group | 2.04 | 1.22 | 0.4 |
| ASTC | Astrotech Corp | 0.02 | 0.31 | 0.3 |
| BANT | Bantec Inc | 206958.33 | -0.55 | 0 |
| FLY.V | FLYHT Aerospace Solutions Ltd | 0.52 | -0.76 | -0.5 |
| GIGA | Giga-tronics Inc | 294.6 | -0.3 | 0 |
| NTS.V | Nanotech Security Corp | 0.01 | -0.04 | -0.04 |
| TIKK | Tel-Instrument Electronics Corp | 0.08 | 0.37 | 0.34 |
| Low | High | |
| Unlevered beta | 0.03 | 0.21 |
| Relevered beta | -0.01 | 77.67 |
| Adjusted relevered beta | 0.32 | 52.37 |
XNNHQ'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 XNNHQ:
cost_of_equity (151.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.32) + 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.