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Molina Healthcare, Inc. (MOH) — WACC Analysis

WACC Breakdown

Molina Healthcare, Inc. (MOH) has a weighted average cost of capital (WACC) of 6.7%. The cost of equity is 7.2%, derived from a beta of 0.37 and a risk-free rate of 4.7%. The after-tax cost of debt is 5.5%. The capital structure is 73.4% equity and 26.6% debt.

Interpretation

A WACC of 6.7% suggests that the market views Molina Healthcare, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare MOH's WACC of 6.7% against industry peers to gauge its relative financing costs. A beta of 0.37 reflects the stock's volatility relative to the broader market.

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VALUATION

MOH WACC: 6.75% for Molina Healthcare, Inc.

Current inputs imply a 7.18% cost of equity and a 5.55% 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

Molina Healthcare, Inc. Common Stock (MOH) WACC Results
Weighted Average Cost of Capital
6.75%
Cost of Equity
7.18%
Risk-Free Rate4.73%
Beta0.37
Market Risk Premium4.23%
Cost of Debt
5.55%
Pre-Tax Cost of Debt5.55%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 73.35%($10.38B)
Debt: 26.65%($3769.00M)
Equity Component
5.27%
73.35% × 7.18%
Debt Component
1.48%
26.65% × 5.55%

Molina Healthcare, Inc. (MOH) WACC in context

Molina Healthcare, Inc. (MOH) currently screens with an estimated WACC of 6.75%. That blends a 7.18% cost of equity, a 5.55% pre-tax cost of debt, and a 73.35% 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 MOH WACC implies

A 6.75% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates MOH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.37 and equity accounts for 73.35% 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.