CRON.TO
Cronos Group Inc
Price:  
2.56 
CAD
Volume:  
66,551.00
Canada | Pharmaceuticals
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CRON.TO WACC - Weighted Average Cost of Capital

The WACC of Cronos Group Inc (CRON.TO) is 6.8%.

The Cost of Equity of Cronos Group Inc (CRON.TO) is 8.75%.
The Cost of Debt of Cronos Group Inc (CRON.TO) is 5.00%.

Range Selected
Cost of equity 7.30% - 10.20% 8.75%
Tax rate 3.40% - 6.40% 4.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 7.4% 6.8%
WACC

CRON.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.82 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 10.20%
Tax rate 3.40% 6.40%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 7.4%
Selected WACC 6.8%

CRON.TO'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 CRON.TO:

cost_of_equity (8.75%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.82) + 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.