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XCHG Limited American Depositary Share (XCH) — WACC Analysis

WACC Breakdown

XCHG Limited American Depositary Share (XCH) has a weighted average cost of capital (WACC) of 7.8%. The cost of equity is 9.4%, derived from a beta of 1.16 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.4%. The capital structure is 73.5% equity and 26.5% debt.

Interpretation

A WACC of 7.8% suggests that the market views XCHG Limited American Depositary Share as relatively low-risk, with a lower cost of financing.

Investors can compare XCH's WACC of 7.8% against industry peers to gauge its relative financing costs. A beta of 1.16 reflects the stock's volatility relative to the broader market.

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VALUATION

XCH WACC: 7.77% for XCHG Limited American Depositary Share

Current inputs imply a 9.35% cost of equity and a 3.36% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
[03]
Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

XCHG Limited American Depositary Share Common Stock (XCH) WACC Results
Weighted Average Cost of Capital
7.77%
Cost of Equity
9.35%
Risk-Free Rate4.67%
Beta1.16
Market Risk Premium4.23%
Cost of Debt
3.36%
Pre-Tax Cost of Debt3.36%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 73.54%($17.79M)
Debt: 26.46%($6.40M)
Equity Component
6.88%
73.54% × 9.35%
Debt Component
0.89%
26.46% × 3.36%

XCHG Limited American Depositary Share (XCH) WACC in context

XCHG Limited American Depositary Share (XCH) currently screens with an estimated WACC of 7.77%. That blends a 9.35% cost of equity, a 3.36% pre-tax cost of debt, and a 73.54% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What XCH WACC implies

A 7.77% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates XCH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.16 and equity accounts for 73.54% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.