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Bausch Health Companies Inc (BHC) — WACC Analysis

WACC Breakdown

Bausch Health Companies Inc (BHC) has a weighted average cost of capital (WACC) of 8.0%. The cost of equity is 10.1%, derived from a beta of 1.22 and a risk-free rate of 5.2%. The after-tax cost of debt is 7.7%. The capital structure is 9.8% equity and 90.2% debt.

Interpretation

A WACC of 8.0% suggests that the market views Bausch Health Companies Inc as relatively low-risk, with a lower cost of financing.

Investors can compare BHC's WACC of 8.0% against industry peers to gauge its relative financing costs. A beta of 1.22 reflects the stock's volatility relative to the broader market.

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VALUATION

BHC WACC: 7.98% for Bausch Health Companies Inc

Current inputs imply a 10.07% cost of equity and a 7.75% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Bausch Health Companies Inc Common Stock (BHC) WACC Results
Weighted Average Cost of Capital
7.98%
Cost of Equity
10.07%
Risk-Free Rate5.22%
Beta1.22
Market Risk Premium4.23%
Cost of Debt
7.75%
Pre-Tax Cost of Debt7.75%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 9.82%($2258.90M)
Debt: 90.18%($20.74B)
Equity Component
0.99%
9.82% × 10.07%
Debt Component
6.99%
90.18% × 7.75%

Bausch Health Companies Inc (BHC) WACC in context

Bausch Health Companies Inc (BHC) currently screens with an estimated WACC of 7.98%. That blends a 10.07% cost of equity, a 7.75% pre-tax cost of debt, and a 9.82% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What BHC WACC implies

A 7.98% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates BHC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.22 and equity accounts for 9.82% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.