Canntab Therapeutics Ltd (PILL.CN) WACC Analysis

As of May 29, 2025, Canntab Therapeutics Ltd (PILL.CN) carries a Weighted Average Cost of Capital (WACC) of 3.9%. WACC reflects the blended rate Canntab Therapeutics Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 4.1%, the cost of debt is 5.0%, 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: 0.08 – 0.41
• Additional risk adjustment: 0.5% – 1.0%
• Debt-to-equity ratio: 9.46

What It Means for Investors

With a selected WACC of 3.9%, Canntab Therapeutics Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.