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

The WACC of Ascend Wellness Holdings Inc (AAWH.U.CN) is 20.5%.

The Cost of Equity of Ascend Wellness Holdings Inc (AAWH.U.CN) is 66.05%.

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

	Range	Selected
Cost of equity	60.00% - 72.10%	66.05%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	8.10% - 23.20%	15.65%
WACC	14.9% - 26.1%	20.5%

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	11.14	11.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	60.00%	72.10%

Tax rate	25.90%	26.50%
Debt/Equity ratio	5.08	5.08
Cost of debt	8.10%	23.20%

After-tax WACC	14.9%	26.1%


Selected WACC	20.5%

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 (66.05%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (11.14) + 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.