POT.CN WACC - Weighted Average Cost of Capital
The WACC of Weekend Unlimited Industries Inc (POT.CN) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.8% | 6.45% |
| Tax rate | 26.5% - 26.5% | 26.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 7.7% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.36 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.8% |
| Tax rate | 26.5% | 26.5% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 7.7% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| POT.CN | Weekend Unlimited Industries Inc | 0.02 | 1.5 | 1.48 |
| ACCA | Acacia Diversified Holdings Inc | 22199.52 | -0.93 | 0 |
| CHM.CN | Chemistree Technology Inc | 2.06 | -0.31 | -0.12 |
| ETST | Earth Science Tech Inc | 0 | 2.25 | 2.25 |
| GNOM.CN | Gnomestar Craft Inc | 2.36 | 1.84 | 0.67 |
| MDIN | Northstar Global Business Services Inc | 34.22 | 0 | 0 |
| RCPIQ | Rock Creek Pharmaceuticals Inc | 1165.92 | 9.02 | 0.01 |
| RSPI | RespireRx Pharmaceuticals Inc | 11.27 | -3.72 | -0.4 |
| SNES | Senestech Inc | 0.05 | 1.75 | 1.69 |
| Low | High | |
| Unlevered beta | 0 | 0.54 |
| Relevered beta | 0.04 | 0.39 |
| Adjusted relevered beta | 0.36 | 0.59 |
POT.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 POT.CN:
cost_of_equity (6.45%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.36) + 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.