PMCN.TA WACC - Weighted Average Cost of Capital

The WACC of Pharmocann Global Ltd (PMCN.TA) is 6.3%.

The Cost of Equity of Pharmocann Global Ltd (PMCN.TA) is 7.60%.

The Cost of Debt of Pharmocann Global Ltd (PMCN.TA) is 5.00%.

	Range	Selected
Cost of equity	6.30% - 8.90%	7.60%
Tax rate	9.90% - 17.60%	13.75%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.6% - 7.0%	6.3%

WACC

PMCN.TA WACC calculation

Category	Low	High

Long-term bond rate	3.4%	3.9%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.55	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.90%

Tax rate	9.90%	17.60%
Debt/Equity ratio	0.65	0.65
Cost of debt	5.00%	5.00%

After-tax WACC	5.6%	7.0%


Selected WACC	6.3%

PMCN.TA'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 PMCN.TA:

cost_of_equity (7.60%) = risk_free_rate (3.65%) + equity_risk_premium (5.90%) * adjusted_beta (0.55) + 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.