XTNT WACC - Weighted Average Cost of Capital
The WACC of Xtant Medical Holdings Inc (XTNT) is 7.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.3% | 6.35% |
| Tax rate | 1.0% - 2.5% | 1.75% |
| Cost of debt | 7.0% - 11.8% | 9.4% |
| WACC | 5.8% - 8.4% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.34 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.3% |
| Tax rate | 1.0% | 2.5% |
| Debt/Equity ratio | 0.36 | 0.36 |
| Cost of debt | 7.0% | 11.8% |
| After-tax WACC | 5.8% | 8.4% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| XTNT | Xtant Medical Holdings Inc | 0.36 | 1.25 | 0.93 |
| ARTH | Arch Therapeutics Inc | 1267524.8 | 1.23 | 0 |
| CEMI | Chembio Diagnostics Inc | 1.12 | 1.86 | 0.88 |
| EMDF | XL Rent Inc | 32.04 | -0.88 | -0.03 |
| OZSC | Ozop Energy Solutions Inc | 11.99 | 0.48 | 0.04 |
| SIEN | Sientra Inc | 26.62 | -1.12 | -0.04 |
| SMTI | Sanara Medtech Inc | 0.12 | 1.15 | 1.03 |
| TELA | TELA Bio Inc | 0.51 | 0.33 | 0.22 |
| UEEC | United Health Products Inc | 0.04 | -0.81 | -0.78 |
| Low | High | |
| Unlevered beta | 0.01 | 0.18 |
| Relevered beta | 0.01 | 0.15 |
| Adjusted relevered beta | 0.34 | 0.43 |
XTNT'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 XTNT:
cost_of_equity (6.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.