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 28.20%.

The Cost of Debt of Fiore Cannabis Ltd (FIOR.CN) is 5.50%.

	Range	Selected
Cost of equity	21.50% - 34.90%	28.20%
Tax rate	0.90% - 1.70%	1.30%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.8% - 9.8%	7.8%

WACC

FIOR.CN WACC calculation

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	21.50%	34.90%

Tax rate	0.90%	1.70%
Debt/Equity ratio	8.71	8.71
Cost of debt	4.00%	7.00%

After-tax WACC	5.8%	9.8%


Selected WACC	7.8%

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.