Question 1

What is Elevance Health, Inc.'s WACC?

Accepted Answer

Elevance Health, Inc. (ELV) has a Weighted Average Cost of Capital (WACC) of 7.04%. This is calculated using a Cost of Equity of 8.55% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.53%, with an equity weight of 69.63% in the capital structure.

Question 2

Is Elevance Health, Inc.'s WACC high or low?

Accepted Answer

Elevance Health, Inc.'s WACC of 7.04% 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 Elevance Health, Inc.'s WACC calculated?

Accepted Answer

Elevance Health, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.55% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.53%. The capital structure is 69.63% equity and 30.37% debt.

Elevance Health, Inc. (ELV) — WACC 分析

WACC 构成

解读

Elevance Health, Inc.（ELV）WACC：7.04%

WACC计算器

Elevance Health, Inc.（ELV） WACC 解读

ELV 公司分析

ELV DCF 估值

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