GAIA.CN WACC - Weighted Average Cost of Capital
The WACC of Gaia Grow Corp (GAIA.CN) is 6.5%.
| Range | Selected | |
| Cost of equity | 19.0% - 26.7% | 22.85% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 7.0% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 3.11 | 3.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 19.0% | 26.7% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 5.91 | 5.91 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 7.0% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GAIA.CN | Gaia Grow Corp | 5.91 | -1.25 | -0.23 |
| CBDX.CN | Canbud Distribution Corp | 0.18 | 1.07 | 0.95 |
| CNSC | CannAssist International Corp | 0.01 | 0.99 | 0.99 |
| LLP.CN | LeanLife Health Inc | 0.05 | 0.6 | 0.58 |
| OVAT.CN | Ovation Science Inc | 0.18 | 1.28 | 1.13 |
| PACR.CN | Pac Roots Cannabis Corp | 0.04 | 1.07 | 1.03 |
| PREV.CN | Preveceutical Medical Inc | 0.24 | 0.46 | 0.39 |
| PURX.V | Pure Extraction Corp | 0 | 0.93 | 0.93 |
| SPUP | Sipup Corp | 3223.79 | 1.79 | 0 |
| TBI.CN | Thoughtful Brands Inc | 0.04 | 0.94 | 0.91 |
| Low | High | |
| Unlevered beta | 0.78 | 0.94 |
| Relevered beta | 4.15 | 5.01 |
| Adjusted relevered beta | 3.11 | 3.69 |
GAIA.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 GAIA.CN:
cost_of_equity (22.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.11) + 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.