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Opko Health Inc. (OPK) — WACC Analysis

WACC Breakdown

Opko Health Inc. (OPK) has a weighted average cost of capital (WACC) of 16.2%. The cost of equity is 10.0%, derived from a beta of 1.21 and a risk-free rate of 5.2%. The after-tax cost of debt is 2357.0%. The capital structure is 99.7% equity and 0.3% debt.

Interpretation

A WACC of 16.2% indicates that the market perceives Opko Health Inc. as higher-risk, requiring a greater return to compensate investors.

Investors can compare OPK's WACC of 16.2% against industry peers to gauge its relative financing costs. A beta of 1.21 reflects the stock's volatility relative to the broader market.

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VALUATION

OPK WACC: 16.16% for Opko Health Inc.

Current inputs imply a 10.04% cost of equity and a 2357.04% 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

Opko Health Inc. Common Stock (OPK) WACC Results
Weighted Average Cost of Capital
16.16%
Cost of Equity
10.04%
Risk-Free Rate5.22%
Beta1.21
Market Risk Premium4.23%
Cost of Debt
2357.04%
Pre-Tax Cost of Debt2357.04%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.74%($1029.93M)
Debt: 0.26%($2.69M)
Equity Component
10.02%
99.74% × 10.04%
Debt Component
6.15%
0.26% × 2357.04%

Opko Health Inc. (OPK) WACC in context

Opko Health Inc. (OPK) currently screens with an estimated WACC of 16.16%. That blends a 10.04% cost of equity, a 2357.04% pre-tax cost of debt, and a 99.74% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What OPK WACC implies

A 16.16% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates OPK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.21 and equity accounts for 99.74% 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.