XPL.WA WACC - Weighted Average Cost of Capital

The WACC of Xplus SA (XPL.WA) is 10.2%.

The Cost of Equity of Xplus SA (XPL.WA) is 10.20%.

The Cost of Debt of Xplus SA (XPL.WA) is 8.95%.

	Range	Selected
Cost of equity	8.90% - 11.50%	10.20%
Tax rate	14.20% - 16.50%	15.35%
Cost of debt	6.10% - 11.80%	8.95%
WACC	8.9% - 11.5%	10.2%

WACC

XPL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.54	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.50%

Tax rate	14.20%	16.50%
Debt/Equity ratio	0.01	0.01
Cost of debt	6.10%	11.80%

After-tax WACC	8.9%	11.5%


Selected WACC	10.2%

XPL.WA'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 XPL.WA:

cost_of_equity (10.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.54) + 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.