XONE.CN WACC - Weighted Average Cost of Capital
The WACC of X1 Esports & Entertainment Ltd (XONE.CN) is 2.5%.
| Range | Selected | |
| Cost of equity | 4.2% - 0.7% | 2.45% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.2% - 0.7% | 2.5% |
| 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 | 4.2% | 0.7% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.2% | 0.7% |
| Selected WACC | 2.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XONE.CN | X1 Esports & Entertainment Ltd | 0 | -7.33 | -7.31 |
| Low | High | |
| Unlevered beta | -7.31 | -7.31 |
| Relevered beta | -7.34 | -7.34 |
| Adjusted relevered beta | -4.59 | -4.59 |
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.