AAWH.U.CN WACC - Weighted Average Cost of Capital

The WACC of Ascend Wellness Holdings Inc (AAWH.U.CN) is 20.4%.

The Cost of Equity of Ascend Wellness Holdings Inc (AAWH.U.CN) is 41.55%.

The Cost of Debt of Ascend Wellness Holdings Inc (AAWH.U.CN) is 15.65%.

	Range	Selected
Cost of equity	37.70% - 45.40%	41.55%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	8.10% - 23.20%	15.65%
WACC	15.4% - 25.4%	20.4%

WACC

AAWH.U.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	6.77	6.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	37.70%	45.40%

Tax rate	25.90%	26.50%
Debt/Equity ratio	2.39	2.39
Cost of debt	8.10%	23.20%

After-tax WACC	15.4%	25.4%


Selected WACC	20.4%

AAWH.U.CN'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 AAWH.U.CN:

cost_of_equity (41.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (6.77) + 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.