JUSH.CN WACC - Weighted Average Cost of Capital

The WACC of Jushi Holdings Inc (JUSH.CN) is 16.1%.

The Cost of Equity of Jushi Holdings Inc (JUSH.CN) is 12.95%.

The Cost of Debt of Jushi Holdings Inc (JUSH.CN) is 23.20%.

	Range	Selected
Cost of equity	10.20% - 15.70%	12.95%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	23.20% - 23.20%	23.20%
WACC	15.5% - 16.7%	16.1%

WACC

JUSH.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.37	1.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	15.70%

Tax rate	25.90%	26.50%
Debt/Equity ratio	3.23	3.23
Cost of debt	23.20%	23.20%

After-tax WACC	15.5%	16.7%


Selected WACC	16.1%

JUSH.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 JUSH.CN:

cost_of_equity (12.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.37) + 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.