VRNO.CN WACC - Weighted Average Cost of Capital

The WACC of Verano Holdings Corp (VRNO.CN) is 9.8%.

The Cost of Equity of Verano Holdings Corp (VRNO.CN) is 10.10%.

The Cost of Debt of Verano Holdings Corp (VRNO.CN) is 11.60%.

	Range	Selected
Cost of equity	9.10% - 11.10%	10.10%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	7.40% - 15.80%	11.60%
WACC	8.5% - 11.2%	9.8%

WACC

VRNO.CN WACC calculation

Category	Low	High

Long-term bond rate	3.6%	4.1%
Equity market risk premium	5.5%	6.5%
Adjusted beta	1	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.10%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.19	0.19
Cost of debt	7.40%	15.80%

After-tax WACC	8.5%	11.2%


Selected WACC	9.8%

VRNO.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 VRNO.CN:

cost_of_equity (10.10%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (1) + 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.