HITI.V WACC - Weighted Average Cost of Capital

The WACC of High Tide Inc (HITI.V) is 6.1%.

The Cost of Equity of High Tide Inc (HITI.V) is 6.55%.

The Cost of Debt of High Tide Inc (HITI.V) is 4.90%.

	Range	Selected
Cost of equity	5.50% - 7.60%	6.55%
Tax rate	3.90% - 7.80%	5.85%
Cost of debt	4.90% - 4.90%	4.90%
WACC	5.3% - 6.9%	6.1%

WACC

HITI.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.32	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.50%	7.60%

Tax rate	3.90%	7.80%
Debt/Equity ratio	0.29	0.29
Cost of debt	4.90%	4.90%

After-tax WACC	5.3%	6.9%


Selected WACC	6.1%

HITI.V'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 HITI.V:

cost_of_equity (6.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.32) + 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.