ACRG.A.U.CN WACC - Weighted Average Cost of Capital
The WACC of Acreage Holdings Inc (ACRG.A.U.CN) is 14.5%.
| Range | Selected | |
| Cost of equity | 440.9% - 955.8% | 698.35% |
| Tax rate | 5.6% - 16.7% | 11.15% |
| Cost of debt | 7.0% - 24.7% | 15.85% |
| WACC | 7.2% - 21.9% | 14.5% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 85.82 | 156.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 440.9% | 955.8% |
| Tax rate | 5.6% | 16.7% |
| Debt/Equity ratio | 729.76 | 729.76 |
| Cost of debt | 7.0% | 24.7% |
| After-tax WACC | 7.2% | 21.9% |
| Selected WACC | 14.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ACRG.A.U.CN | Acreage Holdings Inc | 729.76 | 3.55 | 0.01 |
| CWEB.TO | Charlotte's Web Holdings Inc | 2.93 | 0.9 | 0.24 |
| GUD.TO | Knight Therapeutics Inc | 0.09 | 0.42 | 0.38 |
| HITI.V | High Tide Inc | 0.29 | 1.71 | 1.34 |
| IMCC.CN | IM Cannabis Corp | 2.23 | 1.25 | 0.4 |
| KALA | Kala Pharmaceuticals Inc | 1.17 | 1.1 | 0.52 |
| NOVN | Novan Inc | 3.91 | 1.44 | 0.31 |
| QLI | Qilian International Holding Group Ltd | 0.01 | -0.51 | -0.51 |
| VRCA | Verrica Pharmaceuticals Inc | 0.8 | 0.18 | 0.1 |
| VREO.CN | Vireo Health International Inc | 0.69 | -0.27 | -0.17 |
| YCBD | cbdMD Inc | 1.43 | -0.05 | -0.02 |
| Low | High | |
| Unlevered beta | 0.1 | 0.31 |
| Relevered beta | 127.6 | 232.36 |
| Adjusted relevered beta | 85.82 | 156.01 |
ACRG.A.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 ACRG.A.U.CN:
cost_of_equity (698.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (85.82) + 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.