FIOR.CN
Fiore Cannabis Ltd
Price:  
0.01 
CAD
Volume:  
383,210
Canada | Pharmaceuticals

FIOR.CN WACC - Weighted Average Cost of Capital

The WACC of Fiore Cannabis Ltd (FIOR.CN) is 7.8%.

The Cost of Equity of Fiore Cannabis Ltd (FIOR.CN) is 28.2%.
The Cost of Debt of Fiore Cannabis Ltd (FIOR.CN) is 5.5%.

RangeSelected
Cost of equity21.5% - 34.9%28.2%
Tax rate0.9% - 1.7%1.3%
Cost of debt4.0% - 7.0%5.5%
WACC5.8% - 9.8%7.8%
WACC

FIOR.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta3.595.05
Additional risk adjustments0.0%0.5%
Cost of equity21.5%34.9%
Tax rate0.9%1.7%
Debt/Equity ratio
8.718.71
Cost of debt4.0%7.0%
After-tax WACC5.8%9.8%
Selected WACC7.8%

FIOR.CN WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.510.74
Relevered beta4.877.04
Adjusted relevered beta3.595.05

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.