Question 1

What is CVS HEALTH CORPORATION's WACC?

Accepted Answer

CVS HEALTH CORPORATION (CVS) has a Weighted Average Cost of Capital (WACC) of 6.21%. This is calculated using a Cost of Equity of 7.31% (via CAPM with a beta of 0.47) and a pre-tax Cost of Debt of 5.13%, with an equity weight of 66.28% in the capital structure.

Question 2

Is CVS HEALTH CORPORATION's WACC high or low?

Accepted Answer

CVS HEALTH CORPORATION's WACC of 6.21% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is CVS HEALTH CORPORATION's WACC calculated?

Accepted Answer

CVS HEALTH CORPORATION's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.31% is derived from the CAPM model using a beta of 0.47. The pre-tax Cost of Debt (Rd) is 5.13%. The capital structure is 66.28% equity and 33.72% debt.

CVS HEALTH CORPORATION (CVS) — WACC 分析

WACC 构成

解读

CVS HEALTH CORPORATION（CVS）WACC：6.21%

WACC计算器

CVS HEALTH CORPORATION（CVS） WACC 解读

CVS 公司分析

CVS DCF 估值

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