ACRG.A.U.CN WACC - Weighted Average Cost of Capital

The WACC of Acreage Holdings Inc (ACRG.A.U.CN) is 15.3%.

The Cost of Equity of Acreage Holdings Inc (ACRG.A.U.CN) is 1,211.40%.

The Cost of Debt of Acreage Holdings Inc (ACRG.A.U.CN) is 15.85%.

	Range	Selected
Cost of equity	1,001.80% - 1,421.00%	1,211.40%
Tax rate	5.60% - 16.70%	11.15%
Cost of debt	7.00% - 24.70%	15.85%
WACC	8.0% - 22.5%	15.3%

WACC

ACRG.A.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	195.81	232.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	1,001.80%	1,421.00%

Tax rate	5.60%	16.70%
Debt/Equity ratio	725.19	725.19
Cost of debt	7.00%	24.70%

After-tax WACC	8.0%	22.5%


Selected WACC	15.3%

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 (1,211.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (195.81) + 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.