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PACS Group, Inc. (PACS) — WACC Analysis

WACC Breakdown

PACS Group, Inc. (PACS) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 8.6%, derived from a beta of 0.70 and a risk-free rate of 5.2%. The after-tax cost of debt is 9.5%. The capital structure is 96.6% equity and 3.4% debt.

Interpretation

A WACC of 8.6% is moderate, reflecting the market's balanced risk assessment of PACS Group, Inc..

Investors can compare PACS's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 0.70 reflects the stock's volatility relative to the broader market.

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VALUATION

PACS WACC: 8.63% for PACS Group, Inc.

Current inputs imply a 8.60% cost of equity and a 12.02% 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

PACS Group, Inc. Common Stock (PACS) WACC Results
Weighted Average Cost of Capital
8.63%
Cost of Equity
8.60%
Risk-Free Rate5.22%
Beta0.70
Market Risk Premium4.23%
Cost of Debt
9.49%
Pre-Tax Cost of Debt12.02%
Tax Rate21.00%
Tax Shield2.52%
Capital Structure
Equity: 96.61%($7014.27M)
Debt: 3.39%($246.09M)
Equity Component
8.31%
96.61% × 8.60%
Debt Component
0.32%
3.39% × 9.49%

PACS Group, Inc. (PACS) WACC in context

PACS Group, Inc. (PACS) currently screens with an estimated WACC of 8.63%. That blends a 8.60% cost of equity, a 12.02% pre-tax cost of debt, and a 96.61% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What PACS WACC implies

A 8.63% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PACS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.70 and equity accounts for 96.61% 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.