PLTH.CN
Planet 13 Holdings Inc
Price:  
0.40 
CAD
Volume:  
77,028.00
United States | Pharmaceuticals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

PLTH.CN WACC - Weighted Average Cost of Capital

The WACC of Planet 13 Holdings Inc (PLTH.CN) is 20.2%.

The Cost of Equity of Planet 13 Holdings Inc (PLTH.CN) is 6.90%.
The Cost of Debt of Planet 13 Holdings Inc (PLTH.CN) is 256.30%.

Range Selected
Cost of equity 5.80% - 8.00% 6.90%
Tax rate 28.00% - 36.40% 32.20%
Cost of debt 7.00% - 505.60% 256.30%
WACC 5.8% - 34.6% 20.2%
WACC

PLTH.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.52 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 8.00%
Tax rate 28.00% 36.40%
Debt/Equity ratio 0.09 0.09
Cost of debt 7.00% 505.60%
After-tax WACC 5.8% 34.6%
Selected WACC 20.2%

PLTH.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 PLTH.CN:

cost_of_equity (6.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.