The WACC of Cannabix Technologies Inc (BLO.CN) is 9.2%.
Range | Selected | |
Cost of equity | 7.3% - 11.2% | 9.25% |
Tax rate | 25.9% - 26.5% | 26.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 7.3% - 11.2% | 9.2% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.8 | 1.15 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.3% | 11.2% |
Tax rate | 25.9% | 26.5% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 7.3% | 11.2% |
Selected WACC | 9.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BLO.CN | Cannabix Technologies Inc | 0 | 0.7 | 0.7 |
ACU.V | Aurora Solar Technologies Inc | 0.17 | 2.09 | 1.86 |
DGLY | Digital Ally Inc | 2.13 | 1.67 | 0.65 |
DTII | Defense Technologies International Corp | 1.01 | -0.79 | -0.46 |
LPS.V | Legend Power Systems Inc | 0.02 | 1.1 | 1.09 |
MRM.CN | Micromem Technologies Inc | 0.13 | -0.28 | -0.26 |
PNG.V | Kraken Robotics Inc | 0.02 | 1.54 | 1.52 |
RCAT | Red Cat Holdings Inc | 0 | 1.44 | 1.44 |
SOBR | Sobr Safe Inc | 0.03 | 2.03 | 1.98 |
S9I.DE | Stemmer Imaging AG | 0.02 | 0.72 | 0.71 |
Low | High | |
Unlevered beta | 0.71 | 1.23 |
Relevered beta | 0.7 | 1.22 |
Adjusted relevered beta | 0.8 | 1.15 |
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 BLO.CN:
cost_of_equity (9.25%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.8) + 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.