TRUL.CN WACC - Weighted Average Cost of Capital

The WACC of Trulieve Cannabis Corp (TRUL.CN) is 27.4%.

The Cost of Equity of Trulieve Cannabis Corp (TRUL.CN) is 9.85%.

The Cost of Debt of Trulieve Cannabis Corp (TRUL.CN) is 69.70%.

	Range	Selected
Cost of equity	8.50% - 11.20%	9.85%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	6.80% - 132.60%	69.70%
WACC	7.0% - 47.8%	27.4%

WACC

TRUL.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.04	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.20%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.74	0.74
Cost of debt	6.80%	132.60%

After-tax WACC	7.0%	47.8%


Selected WACC	27.4%

TRUL.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 TRUL.CN:

cost_of_equity (9.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.04) + 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.