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Option Care Health, Inc. Common Stock (OPCH) — WACC Analysis

WACC Breakdown

Option Care Health, Inc. Common Stock (OPCH) has a weighted average cost of capital (WACC) of 7.7%. The cost of equity is 8.7%, derived from a beta of 0.72 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.7%. The capital structure is 80.1% equity and 19.9% debt.

Interpretation

A WACC of 7.7% suggests that the market views Option Care Health, Inc. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare OPCH's WACC of 7.7% against industry peers to gauge its relative financing costs. A beta of 0.72 reflects the stock's volatility relative to the broader market.

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VALUATION

OPCH WACC: 7.68% for Option Care Health, Inc. Common Stock

Current inputs imply a 8.66% cost of equity and a 4.71% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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
[03]
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

Option Care Health, Inc. Common Stock Common Stock (OPCH) WACC Results
Weighted Average Cost of Capital
7.68%
Cost of Equity
8.66%
Risk-Free Rate5.22%
Beta0.72
Market Risk Premium4.23%
Cost of Debt
3.72%
Pre-Tax Cost of Debt4.71%
Tax Rate21.00%
Tax Shield0.99%
Capital Structure
Equity: 80.07%($4658.58M)
Debt: 19.93%($1159.82M)
Equity Component
6.93%
80.07% × 8.66%
Debt Component
0.74%
19.93% × 3.72%

Option Care Health, Inc. Common Stock (OPCH) WACC in context

Option Care Health, Inc. Common Stock (OPCH) currently screens with an estimated WACC of 7.68%. That blends a 8.66% cost of equity, a 4.71% pre-tax cost of debt, and a 80.07% 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 OPCH WACC implies

A 7.68% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates OPCH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.72 and equity accounts for 80.07% 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.