AYR.A.CN WACC - Weighted Average Cost of Capital

The WACC of Ayr Wellness Inc (AYR.A.CN) is 10.8%.

The Cost of Equity of Ayr Wellness Inc (AYR.A.CN) is 22.80%.

The Cost of Debt of Ayr Wellness Inc (AYR.A.CN) is 13.50%.

	Range	Selected
Cost of equity	15.00% - 30.60%	22.80%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	7.00% - 20.00%	13.50%
WACC	5.8% - 15.7%	10.8%

WACC

AYR.A.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.32	4.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.00%	30.60%

Tax rate	25.90%	26.50%
Debt/Equity ratio	14.21	14.21
Cost of debt	7.00%	20.00%

After-tax WACC	5.8%	15.7%


Selected WACC	10.8%

AYR.A.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 AYR.A.CN:

cost_of_equity (22.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (2.32) + 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.