Question 1

What is Molina Healthcare, Inc.'s WACC?

Accepted Answer

Molina Healthcare, Inc. (MOH) has a Weighted Average Cost of Capital (WACC) of 6.35%. This is calculated using a Cost of Equity of 7.02% (via CAPM with a beta of 0.37) and a pre-tax Cost of Debt of 5.39%, with an equity weight of 75.67% in the capital structure.

Question 2

Is Molina Healthcare, Inc.'s WACC high or low?

Accepted Answer

Molina Healthcare, Inc.'s WACC of 6.35% 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 Molina Healthcare, Inc.'s WACC calculated?

Accepted Answer

Molina Healthcare, Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.02% is derived from the CAPM model using a beta of 0.37. The pre-tax Cost of Debt (Rd) is 5.39%. The capital structure is 75.67% equity and 24.33% debt.

Molina Healthcare, Inc. (MOH) — WACC 分析

WACC 构成

解读

Molina Healthcare, Inc.（MOH）WACC：6.35%

WACC计算器

Molina Healthcare, Inc.（MOH） WACC 解读

MOH 公司分析

MOH DCF 估值

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