AAWH.U.CN
Ascend Wellness Holdings Inc
Price:  
0.38 
CAD
Volume:  
45,550.00
United States | N/A
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AAWH.U.CN WACC - Weighted Average Cost of Capital

The WACC of Ascend Wellness Holdings Inc (AAWH.U.CN) is 20.6%.

The Cost of Equity of Ascend Wellness Holdings Inc (AAWH.U.CN) is 69.50%.
The Cost of Debt of Ascend Wellness Holdings Inc (AAWH.U.CN) is 15.95%.

Range Selected
Cost of equity 63.10% - 75.90% 69.50%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 8.70% - 23.20% 15.95%
WACC 15.1% - 26.1% 20.6%
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 11.76 11.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 63.10% 75.90%
Tax rate 25.90% 26.50%
Debt/Equity ratio 5.5 5.5
Cost of debt 8.70% 23.20%
After-tax WACC 15.1% 26.1%
Selected WACC 20.6%

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 (69.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (11.76) + 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.