XONE.CN
X1 Esports & Entertainment Ltd
Price:  
0.88 
CAD
Volume:  
630,920.00
Canada | N/A
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XONE.CN WACC - Weighted Average Cost of Capital

The WACC of X1 Esports & Entertainment Ltd (XONE.CN) is 2.5%.

The Cost of Equity of X1 Esports & Entertainment Ltd (XONE.CN) is 2.45%.
The Cost of Debt of X1 Esports & Entertainment Ltd (XONE.CN) is 5.00%.

Range Selected
Cost of equity 0.70% - 4.20% 2.45%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.2% - 0.7% 2.5%
WACC

XONE.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -4.59 -4.59
Additional risk adjustments 24.5% 25.0%
Cost of equity 0.70% 4.20%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 4.2% 0.7%
Selected WACC 2.5%

XONE.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 XONE.CN:

cost_of_equity (2.45%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-4.59) + risk_adjustments (24.75%)

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