TRUL.CN WACC - Weighted Average Cost of Capital

The WACC of Trulieve Cannabis Corp (TRUL.CN) is 22.7%.

The Cost of Equity of Trulieve Cannabis Corp (TRUL.CN) is 9.20%.

The Cost of Debt of Trulieve Cannabis Corp (TRUL.CN) is 49.70%.

	Range	Selected
Cost of equity	7.20% - 11.20%	9.20%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	11.70% - 87.70%	49.70%
WACC	7.9% - 37.5%	22.7%

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	0.8	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	11.20%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.98	0.98
Cost of debt	11.70%	87.70%

After-tax WACC	7.9%	37.5%


Selected WACC	22.7%

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 (9.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.8) + 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.