XSPT WACC - Weighted Average Cost of Capital
The WACC of XSport Global Inc (XSPT) is 5.5%.
| Range | Selected | |
| Cost of equity | 8.4% - 29.2% | 18.8% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.2% - 5.7% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.99 | 4.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 29.2% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 41.39 | 41.39 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.2% | 5.7% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XSPT | XSport Global Inc | 41.39 | 9.59 | 0.31 |
| BTV.V | BlueRush Inc | 13.03 | 1.97 | 0.19 |
| LTV.V | LeoNovus Inc | 0.16 | 0.22 | 0.2 |
| LTX.V | Labrador Technologies Inc | 0.95 | -1.77 | -1.04 |
| MEDT | Mediatechnics Corp | 377.21 | 0 | 0 |
| NPA.V | Alphinat Inc | 0.03 | 0.97 | 0.95 |
| PCLI | Protocall Technologies Inc | 9.65 | -0.03 | 0 |
| UI.V | Urbanimmersive Inc | 2.62 | 0.68 | 0.23 |
| VIS.V | Visionstate Corp | 0.04 | 0.05 | 0.05 |
| VSST | Voice Assist Inc | 0.53 | 1.13 | 0.81 |
| Low | High | |
| Unlevered beta | 0.13 | 0.21 |
| Relevered beta | 0.99 | 6 |
| Adjusted relevered beta | 0.99 | 4.35 |
XSPT'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 XSPT:
cost_of_equity (18.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.99) + 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.