VREO.CN
Vireo Health International Inc
Price:  
0.51 
CAD
Volume:  
44,750.00
United States | Pharmaceuticals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

VREO.CN WACC - Weighted Average Cost of Capital

The WACC of Vireo Health International Inc (VREO.CN) is 12.2%.

The Cost of Equity of Vireo Health International Inc (VREO.CN) is 11.40%.
The Cost of Debt of Vireo Health International Inc (VREO.CN) is 18.45%.

Range Selected
Cost of equity 9.80% - 13.00% 11.40%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 16.70% - 20.20% 18.45%
WACC 10.7% - 13.6% 12.2%
WACC

VREO.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.31 1.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 13.00%
Tax rate 25.90% 26.50%
Debt/Equity ratio 0.54 0.54
Cost of debt 16.70% 20.20%
After-tax WACC 10.7% 13.6%
Selected WACC 12.2%

VREO.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 VREO.CN:

cost_of_equity (11.40%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.31) + 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.