TSND.TO
Terrascend Corp
Price:  
0.48 
CAD
Volume:  
113,126.00
Canada | Pharmaceuticals
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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 8.35%.
The Cost of Debt of Terrascend Corp (TSND.TO) is 10.30%.

Range Selected
Cost of equity 7.40% - 9.30% 8.35%
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 0.83 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.30%
Tax rate 26.80% 39.40%
Debt/Equity ratio 1.65 1.65
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 (8.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.83) + 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.