Vireo Health International Inc (VREO.CN) WACC Analysis

As of June 3, 2025, Vireo Health International Inc (VREO.CN) carries a Weighted Average Cost of Capital (WACC) of 12.9%. WACC reflects the blended rate Vireo Health International Inc must pay to both equity and debt holders.

Within that, the cost of equity is 10.5%, the cost of debt is 16.7%, 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: 1.43 – 1.69
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.68

What It Means for Investors

With a selected WACC of 12.9%, Vireo Health International Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.