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Phreesia, Inc. (PHR) — WACC Analysis

WACC Breakdown

Phreesia, Inc. (PHR) has a weighted average cost of capital (WACC) of 10.6%. The cost of equity is 10.5%, derived from a beta of 1.42 and a risk-free rate of 5.0%. The after-tax cost of debt is 12.1%. The capital structure is 92.1% equity and 7.9% debt.

Interpretation

A WACC of 10.6% is moderate, reflecting the market's balanced risk assessment of Phreesia, Inc..

Investors can compare PHR's WACC of 10.6% against industry peers to gauge its relative financing costs. A beta of 1.42 reflects the stock's volatility relative to the broader market.

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VALUATION

PHR WACC: 10.59% for Phreesia, Inc.

Current inputs imply a 10.46% cost of equity and a 15.28% 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

Phreesia, Inc. Common Stock (PHR) WACC Results
Weighted Average Cost of Capital
10.59%
Cost of Equity
10.46%
Risk-Free Rate5.05%
Beta1.42
Market Risk Premium4.23%
Cost of Debt
12.07%
Pre-Tax Cost of Debt15.28%
Tax Rate21.00%
Tax Shield3.21%
Capital Structure
Equity: 92.13%($777.75M)
Debt: 7.87%($66.45M)
Equity Component
9.64%
92.13% × 10.46%
Debt Component
0.95%
7.87% × 12.07%

Phreesia, Inc. (PHR) WACC in context

Phreesia, Inc. (PHR) currently screens with an estimated WACC of 10.59%. That blends a 10.46% cost of equity, a 15.28% pre-tax cost of debt, and a 92.13% 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 PHR WACC implies

A 10.59% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates PHR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.42 and equity accounts for 92.13% 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.