MMEN.CN
Medmen Enterprises Inc
Price:  
0.02 
CAD
Volume:  
632,942.00
United States | Pharmaceuticals
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MMEN.CN WACC - Weighted Average Cost of Capital

The WACC of Medmen Enterprises Inc (MMEN.CN) is 7.2%.

The Cost of Equity of Medmen Enterprises Inc (MMEN.CN) is 17.35%.
The Cost of Debt of Medmen Enterprises Inc (MMEN.CN) is 7.00%.

Range Selected
Cost of equity 13.20% - 21.50% 17.35%
Tax rate 2.60% - 3.90% 3.25%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.1% - 7.4% 7.2%
WACC

MMEN.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.98 2.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.20% 21.50%
Tax rate 2.60% 3.90%
Debt/Equity ratio 21.92 21.92
Cost of debt 7.00% 7.00%
After-tax WACC 7.1% 7.4%
Selected WACC 7.2%

MMEN.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 MMEN.CN:

cost_of_equity (17.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.98) + 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.