CNSC WACC - Weighted Average Cost of Capital
The WACC of CannAssist International Corp (CNSC) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.6% | 6.4% |
| Tax rate | 27.0% - 27.0% | 27% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 7.6% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 0.49 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.6% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 7.6% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CNSC | CannAssist International Corp | 0.01 | 0.99 | 0.99 |
| CRFT.CN | BC Craft Supply Co Ltd | 4.27 | 3.55 | 0.86 |
| EDEN.CN | Eden Empire Inc | 2.34 | 3.55 | 1.31 |
| EMED | Electromedical Technologies Inc | 9.03 | 1.56 | 0.21 |
| GAIA.CN | Gaia Grow Corp | 5.91 | -1.25 | -0.23 |
| KPAY | KinerjaPay Corp | 12.69 | 1.06 | 0.1 |
| LLP.CN | LeanLife Health Inc | 0.05 | 0.6 | 0.58 |
| MMNT | Momentous Holdings Corp | 10.96 | 0.47 | 0.05 |
| PREV.CN | Preveceutical Medical Inc | 0.2 | 0.17 | 0.15 |
| ZRO.CN | Biosenta Inc | 1.38 | 2.61 | 1.3 |
| Low | High | |
| Unlevered beta | 0.18 | 0.69 |
| Relevered beta | 0.24 | 0.48 |
| Adjusted relevered beta | 0.49 | 0.65 |
CNSC'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 CNSC:
cost_of_equity (6.40%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.49) + 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.