TSND.TO WACC - Weighted Average Cost of Capital

The WACC of Terrascend Corp (TSND.TO) is 7.3%.

The Cost of Equity of Terrascend Corp (TSND.TO) is 8.15%.

The Cost of Debt of Terrascend Corp (TSND.TO) is 10.30%.

	Range	Selected
Cost of equity	7.20% - 9.10%	8.15%
Tax rate	26.80% - 39.40%	33.10%
Cost of debt	5.70% - 14.90%	10.30%
WACC	5.4% - 9.1%	7.3%

WACC

TSND.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.79	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.20%	9.10%

Tax rate	26.80%	39.40%
Debt/Equity ratio	1.37	1.37
Cost of debt	5.70%	14.90%

After-tax WACC	5.4%	9.1%


Selected WACC	7.3%

TSND.TO'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 TSND.TO:

cost_of_equity (8.15%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.79) + 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.