BEV.CN WACC - Weighted Average Cost of Capital

The WACC of Bevcanna Enterprises Inc (BEV.CN) is 6.3%.

The Cost of Equity of Bevcanna Enterprises Inc (BEV.CN) is 6.25%.

The Cost of Debt of Bevcanna Enterprises Inc (BEV.CN) is 8.45%.

	Range	Selected
Cost of equity	5.30% - 7.20%	6.25%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	7.00% - 9.90%	8.45%
WACC	5.3% - 7.2%	6.3%

WACC

BEV.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.33	0.42

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.30%	7.20%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.52	0.52
Cost of debt	7.00%	9.90%

After-tax WACC	5.3%	7.2%


Selected WACC	6.3%

BEV.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 BEV.CN:

cost_of_equity (6.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.