TLRY
Tilray Inc
Price:  
0.46 
USD
Volume:  
22,247,244.00
Canada | Pharmaceuticals
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TLRY WACC - Weighted Average Cost of Capital

The WACC of Tilray Inc (TLRY) is 7.0%.

The Cost of Equity of Tilray Inc (TLRY) is 8.65%.
The Cost of Debt of Tilray Inc (TLRY) is 5.00%.

Range Selected
Cost of equity 7.30% - 10.00% 8.65%
Tax rate 1.80% - 2.30% 2.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.2% - 7.7% 7.0%
WACC

TLRY WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.74 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 10.00%
Tax rate 1.80% 2.30%
Debt/Equity ratio 0.79 0.79
Cost of debt 5.00% 5.00%
After-tax WACC 6.2% 7.7%
Selected WACC 7.0%

TLRY'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 TLRY:

cost_of_equity (8.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.74) + 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.