TILT.CN
TILT Holdings Inc
Price:  
0.58 
CAD
Volume:  
107,110.00
Canada | Pharmaceuticals
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TILT.CN WACC - Weighted Average Cost of Capital

The WACC of TILT Holdings Inc (TILT.CN) is 7.3%.

The Cost of Equity of TILT Holdings Inc (TILT.CN) is 8.55%.
The Cost of Debt of TILT Holdings Inc (TILT.CN) is 5.00%.

Range Selected
Cost of equity 7.00% - 10.10% 8.55%
Tax rate -% - 1.10% 0.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 8.4% 7.3%
WACC

TILT.CN WACC calculation

Category Low High
Long-term bond rate 3.4% 3.9%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.76 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 10.10%
Tax rate -% 1.10%
Debt/Equity ratio 0.51 0.51
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 8.4%
Selected WACC 7.3%

TILT.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 TILT.CN:

cost_of_equity (8.55%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.76) + 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.