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Labcorp Holdings Inc. (LH) — WACC Analysis

WACC Breakdown

Labcorp Holdings Inc. (LH) has a weighted average cost of capital (WACC) of 7.3%. The cost of equity is 8.2%, derived from a beta of 0.60 and a risk-free rate of 5.0%. The after-tax cost of debt is 3.1%. The capital structure is 83.6% equity and 16.4% debt.

Interpretation

A WACC of 7.3% suggests that the market views Labcorp Holdings Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare LH's WACC of 7.3% against industry peers to gauge its relative financing costs. A beta of 0.60 reflects the stock's volatility relative to the broader market.

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VALUATION

LH WACC: 7.32% for Labcorp Holdings Inc.

Current inputs imply a 8.15% cost of equity and a 3.88% 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

Labcorp Holdings Inc. Common Stock (LH) WACC Results
Weighted Average Cost of Capital
7.32%
Cost of Equity
8.15%
Risk-Free Rate5.05%
Beta0.60
Market Risk Premium4.23%
Cost of Debt
3.06%
Pre-Tax Cost of Debt3.88%
Tax Rate21.00%
Tax Shield0.81%
Capital Structure
Equity: 83.61%($29.89B)
Debt: 16.39%($5858.50M)
Equity Component
6.82%
83.61% × 8.15%
Debt Component
0.50%
16.39% × 3.06%

Labcorp Holdings Inc. (LH) WACC in context

Labcorp Holdings Inc. (LH) currently screens with an estimated WACC of 7.32%. That blends a 8.15% cost of equity, a 3.88% pre-tax cost of debt, and a 83.61% 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 LH WACC implies

A 7.32% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates LH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.60 and equity accounts for 83.61% 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.

LH WACC: 7.32% — Labcorp Holdings Inc. Cost of Capital (October 2026) | DeepViews