IAN.CN
Ianthus Capital Holdings Inc
Price:  
0.01 
CAD
Volume:  
15,025.00
Canada | Pharmaceuticals
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IAN.CN WACC - Weighted Average Cost of Capital

The WACC of Ianthus Capital Holdings Inc (IAN.CN) is 3.3%.

The Cost of Equity of Ianthus Capital Holdings Inc (IAN.CN) is 7.50%.
The Cost of Debt of Ianthus Capital Holdings Inc (IAN.CN) is 4.25%.

Range Selected
Cost of equity 5.60% - 9.40% 7.50%
Tax rate 25.90% - 45.40% 35.65%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.3% - 3.3% 3.3%
WACC

IAN.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.47 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 9.40%
Tax rate 25.90% 45.40%
Debt/Equity ratio 7.36 7.36
Cost of debt 4.00% 4.50%
After-tax WACC 3.3% 3.3%
Selected WACC 3.3%

IAN.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 IAN.CN:

cost_of_equity (7.50%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.