IMCC.CN WACC - Weighted Average Cost of Capital

The WACC of IM Cannabis Corp (IMCC.CN) is 20.6%.

The Cost of Equity of IM Cannabis Corp (IMCC.CN) is 6.30%.

The Cost of Debt of IM Cannabis Corp (IMCC.CN) is 28.60%.

	Range	Selected
Cost of equity	5.40% - 7.20%	6.30%
Tax rate	6.50% - 8.10%	7.30%
Cost of debt	7.00% - 50.20%	28.60%
WACC	6.2% - 34.9%	20.6%

WACC

IMCC.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.25	0.33

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.40%	7.20%

Tax rate	6.50%	8.10%
Debt/Equity ratio	2.47	2.47
Cost of debt	7.00%	50.20%

After-tax WACC	6.2%	34.9%


Selected WACC	20.6%

IMCC.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 IMCC.CN:

cost_of_equity (6.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.25) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.