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Boston Scientific Corp. (BSX) — WACC Analysis

WACC Breakdown

Boston Scientific Corp. (BSX) has a weighted average cost of capital (WACC) of 7.3%. The cost of equity is 8.0%, derived from a beta of 0.66 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.6%. The capital structure is 86.5% equity and 13.5% debt.

Interpretation

A WACC of 7.3% suggests that the market views Boston Scientific Corp. as relatively low-risk, with a lower cost of financing.

Investors can compare BSX's WACC of 7.3% against industry peers to gauge its relative financing costs. A beta of 0.66 reflects the stock's volatility relative to the broader market.

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VALUATION

BSX WACC: 7.28% for Boston Scientific Corp.

Current inputs imply a 8.00% cost of equity and a 3.33% 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

Boston Scientific Corp. Common Stock (BSX) WACC Results
Weighted Average Cost of Capital
7.28%
Cost of Equity
8.00%
Risk-Free Rate4.73%
Beta0.66
Market Risk Premium4.23%
Cost of Debt
2.63%
Pre-Tax Cost of Debt3.33%
Tax Rate21.00%
Tax Shield0.70%
Capital Structure
Equity: 86.51%($70.00B)
Debt: 13.49%($10.91B)
Equity Component
6.92%
86.51% × 8.00%
Debt Component
0.35%
13.49% × 2.63%

Boston Scientific Corp. (BSX) WACC in context

Boston Scientific Corp. (BSX) currently screens with an estimated WACC of 7.28%. That blends a 8.00% cost of equity, a 3.33% pre-tax cost of debt, and a 86.51% 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 BSX WACC implies

A 7.28% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates BSX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.66 and equity accounts for 86.51% 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.