Planet 13 Holdings Inc (PLTH.CN) WACC Analysis

As of May 23, 2025, Planet 13 Holdings Inc (PLTH.CN) carries a Weighted Average Cost of Capital (WACC) of 22.1%. WACC reflects the blended rate Planet 13 Holdings Inc must pay to both equity and debt holders.

Within that, the cost of equity is 5.9%, the cost of debt is 7.0%, and the effective tax rate is 28.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.54 – 0.66
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.11

What It Means for Investors

With a selected WACC of 22.1%, Planet 13 Holdings Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.