CBDT.CN WACC - Weighted Average Cost of Capital
The WACC of Empower Clinics Inc (CBDT.CN) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 6.8% | 6.1% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 7.0% - 7.7% | 7.35% |
| WACC | 5.3% - 6.3% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.6% | 4.1% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.33 | 0.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 6.8% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.79 | 0.79 |
| Cost of debt | 7.0% | 7.7% |
| After-tax WACC | 5.3% | 6.3% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CBDT.CN | Empower Clinics Inc | 0.79 | 3.26 | 2.06 |
| CCEL | Cryo-Cell International Inc | 0.21 | -0.18 | -0.15 |
| CCM | Concord Medical Services Holdings Ltd | 12.2 | 0.04 | 0 |
| CTHZ | Cancer Treatment Holdings Inc | 0.37 | 0.33 | 0.26 |
| NPTH.V | NeuPath Health Inc | 0.88 | 0.94 | 0.57 |
| OCLG | Oncologix Tech Inc | 45.18 | 25.05 | 0.73 |
| PDH.V | Premier Diversified Holdings Inc | 1.28 | 0.11 | 0.06 |
| SPIN | Spine Injury Solutions Inc | 0.12 | -0.02 | -0.02 |
| XGN | Exagen Inc | 0.19 | 0.96 | 0.84 |
| Low | High | |
| Unlevered beta | 0.1 | 0.51 |
| Relevered beta | 0 | 0.01 |
| Adjusted relevered beta | 0.33 | 0.34 |
CBDT.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 CBDT.CN:
cost_of_equity (6.10%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.33) + 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.