Ayr Wellness Inc (AYR.A.CN) WACC Analysis

As of May 23, 2025, Ayr Wellness Inc (AYR.A.CN) carries a Weighted Average Cost of Capital (WACC) of 10.8%. WACC reflects the blended rate Ayr Wellness Inc must pay to both equity and debt holders.

Within that, the cost of equity is 16.4%, the cost of debt is 7.0%, and the effective tax rate is 25.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 2.59 – 4.94
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 16.12

What It Means for Investors

With a selected WACC of 10.8%, Ayr Wellness Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.