GDNS.CN
Goodness Growth Holdings Inc
Price:  
0.50 
CAD
Volume:  
115,500.00
United States | Pharmaceuticals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

GDNS.CN WACC - Weighted Average Cost of Capital

The WACC of Goodness Growth Holdings Inc (GDNS.CN) is 9.7%.

The Cost of Equity of Goodness Growth Holdings Inc (GDNS.CN) is 7.85%.
The Cost of Debt of Goodness Growth Holdings Inc (GDNS.CN) is 14.25%.

Range Selected
Cost of equity 6.00% - 9.70% 7.85%
Tax rate 15.20% - 27.00% 21.10%
Cost of debt 8.30% - 20.20% 14.25%
WACC 6.6% - 12.8% 9.7%
WACC

GDNS.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.56 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 9.70%
Tax rate 15.20% 27.00%
Debt/Equity ratio 1.65 1.65
Cost of debt 8.30% 20.20%
After-tax WACC 6.6% 12.8%
Selected WACC 9.7%

GDNS.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 GDNS.CN:

cost_of_equity (7.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.