CANL WACC - Weighted Average Cost of Capital
The WACC of Cannlabs Inc (CANL) is 8.5%.
| Range | Selected | |
| Cost of equity | 5.6% - 10.1% | 7.85% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 16.4% | 11.7% |
| WACC | 5.2% - 11.9% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.38 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 10.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 23.29 | 23.29 |
| Cost of debt | 7.0% | 16.4% |
| After-tax WACC | 5.2% | 11.9% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CANL | Cannlabs Inc | 23.29 | -323.37 | -17.96 |
| ICON.L | Iconic Labs PLC | 10.31 | 0 | 0 |
| CCM | Concord Medical Services Holdings Ltd | 15.3 | 0.22 | 0.02 |
| CTEK | CynergisTek Inc | 0.01 | 1.24 | 1.23 |
| DIGP | Digipath Inc | 1.96 | -2.09 | -0.86 |
| KDA.V | KDA Group Inc | 0.02 | 0.31 | 0.31 |
| NRC | National Research Corp | 0.2 | 0.76 | 0.66 |
| PDH.V | Premier Diversified Holdings Inc | 1.28 | 0.11 | 0.06 |
| SPIN | Spine Injury Solutions Inc | 0.12 | -0.02 | -0.02 |
| Low | High | |
| Unlevered beta | 0 | 0.05 |
| Relevered beta | 0.07 | 0.9 |
| Adjusted relevered beta | 0.38 | 0.93 |
CANL'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 CANL:
cost_of_equity (7.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.38) + 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.