The WACC of 1933 Industries Inc (TGIF.CN) is 8.5%.
Range | Selected | |
Cost of equity | 22.2% - 46.0% | 34.1% |
Tax rate | 3.5% - 5.5% | 4.5% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 7.0% - 10.0% | 8.5% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 3.74 | 6.85 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 22.2% | 46.0% |
Tax rate | 3.5% | 5.5% |
Debt/Equity ratio | 6.84 | 6.84 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 7.0% | 10.0% |
Selected WACC | 8.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
TGIF.CN | 1933 Industries Inc | 6.84 | -5.01 | -0.66 |
ACAN | Americann Inc | 2083.5 | -1.17 | 0 |
CLSH | CLS Holdings USA Inc | 1.15 | 0.78 | 0.37 |
CPHI | China Pharma Holdings Inc | 0.57 | 0.56 | 0.36 |
CSI.CN | Chemesis International Inc | 0.02 | 1.5 | 1.48 |
EAT.CN | Nutritional High International Inc | 2.91 | 0.9 | 0.24 |
GRIN.CN | Grown Rogue International Inc | 0.08 | 1.7 | 1.58 |
HVT.V | Harvest One Cannabis Inc | 0.28 | 1.81 | 1.43 |
NBY | NovaBay Pharmaceuticals Inc | 0.14 | 1.54 | 1.35 |
NRTH.V | 48North Cannabis Corp | 0.05 | 1.3 | 1.24 |
POLXF | Polydex Pharmaceuticals Ltd | 0.06 | 0.93 | 0.87 |
Low | High | |
Unlevered beta | 0.37 | 1.24 |
Relevered beta | 5.09 | 9.73 |
Adjusted relevered beta | 3.74 | 6.85 |
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 TGIF.CN:
cost_of_equity (34.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (3.74) + 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.