FIOR.CN WACC - Weighted Average Cost of Capital
The WACC of Fiore Cannabis Ltd (FIOR.CN) is 7.8%.
| Range | Selected | |
| Cost of equity | 21.5% - 34.9% | 28.2% |
| Tax rate | 0.9% - 1.7% | 1.3% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.8% - 9.8% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 3.59 | 5.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 21.5% | 34.9% |
| Tax rate | 0.9% | 1.7% |
| Debt/Equity ratio | 8.71 | 8.71 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.8% | 9.8% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FIOR.CN | Fiore Cannabis Ltd | 8.71 | 1.83 | 0.19 |
| ACB.TO | Aurora Cannabis Inc | 0.31 | 1.61 | 1.23 |
| BHC.TO | Bausch Health Companies Inc | 9.12 | 1.17 | 0.12 |
| CURA.CN | Curaleaf Holdings Inc | 0.23 | 1.48 | 1.21 |
| SNDL | Sundial Growers Inc | 0.31 | 0.5 | 0.38 |
| TER.CN | Terrascend Corp | 0.33 | 1.01 | 0.76 |
| TLRY | Tilray Inc | 0.62 | 1.12 | 0.7 |
| Low | High | |
| Unlevered beta | 0.51 | 0.74 |
| Relevered beta | 4.87 | 7.04 |
| Adjusted relevered beta | 3.59 | 5.05 |
FIOR.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 FIOR.CN:
cost_of_equity (28.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.59) + 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.