XOX.KL
XOX Bhd
Price:  
0.41 
MYR
Volume:  
3,572,400.00
Malaysia | Wireless Telecommunication Services
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XOX.KL WACC - Weighted Average Cost of Capital

The WACC of XOX Bhd (XOX.KL) is 10.0%.

The Cost of Equity of XOX Bhd (XOX.KL) is 10.75%.
The Cost of Debt of XOX Bhd (XOX.KL) is 8.45%.

Range Selected
Cost of equity 8.70% - 12.80% 10.75%
Tax rate 1.80% - 2.40% 2.10%
Cost of debt 7.00% - 9.90% 8.45%
WACC 8.1% - 11.8% 10.0%
WACC

XOX.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.72 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 12.80%
Tax rate 1.80% 2.40%
Debt/Equity ratio 0.48 0.48
Cost of debt 7.00% 9.90%
After-tax WACC 8.1% 11.8%
Selected WACC 10.0%

XOX.KL'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 XOX.KL:

cost_of_equity (10.75%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.72) + 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.