CVGR.CN WACC - Weighted Average Cost of Capital
The WACC of City View Green Holdings Inc (CVGR.CN) is 5.3%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.0% | 6.1% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 5.9% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.41 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.0% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.5 | 0.5 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 5.9% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CVGR.CN | City View Green Holdings Inc | 0.5 | 3.61 | 2.64 |
| BSEM | Biostem Technologies Inc | 0.02 | 1.97 | 1.94 |
| CPMD | CannaPharmaRx Inc | 2.16 | -0.6 | -0.23 |
| KAYS | Kaya Holdings Inc | 5.48 | 0.56 | 0.11 |
| KOAN | Resonate Blends Inc | 27.07 | 0.71 | 0.03 |
| MJ.CN | True Leaf Brands Inc | 8.68 | 1.01 | 0.14 |
| MLCL.CN | Molecule Holdings Inc | 10.9 | 1.39 | 0.15 |
| MMJ.CN | Matica Enterprises Inc | 0.17 | 1.15 | 1.02 |
| RSPI | RespireRx Pharmaceuticals Inc | 4.93 | -0.99 | -0.21 |
| SPR.CN | Sproutly Canada Inc | 1.34 | 0.44 | 0.22 |
| Low | High | |
| Unlevered beta | 0.13 | 0.18 |
| Relevered beta | 0.12 | 0.19 |
| Adjusted relevered beta | 0.41 | 0.46 |
CVGR.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 CVGR.CN:
cost_of_equity (6.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.41) + 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.