HITI.V
High Tide Inc
Price:  
3.29 
CAD
Volume:  
34,865.00
Canada | Pharmaceuticals
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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 5.60% - 7.50% 6.55%
Tax rate 3.90% - 7.80% 5.85%
Cost of debt 4.90% - 4.90% 4.90%
WACC 5.4% - 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 0.33 0.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 7.50%
Tax rate 3.90% 7.80%
Debt/Equity ratio 0.28 0.28
Cost of debt 4.90% 4.90%
After-tax WACC 5.4% 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 (0.33) + 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.