Question 1

What is Option Care Health, Inc. Common Stock's WACC?

Accepted Answer

Option Care Health, Inc. Common Stock (OPCH) has a Weighted Average Cost of Capital (WACC) of 6.93%. This is calculated using a Cost of Equity of 8.06% (via CAPM with a beta of 0.78) and a pre-tax Cost of Debt of 4.71%, with an equity weight of 73.86% in the capital structure.

Question 2

Is Option Care Health, Inc. Common Stock's WACC high or low?

Accepted Answer

Option Care Health, Inc. Common Stock's WACC of 6.93% 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 Option Care Health, Inc. Common Stock's WACC calculated?

Accepted Answer

Option Care Health, Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.06% is derived from the CAPM model using a beta of 0.78. The pre-tax Cost of Debt (Rd) is 4.71%. The capital structure is 73.86% equity and 26.14% debt.

Option Care Health, Inc. Common Stock (OPCH) — WACC 分析

WACC 构成

解读

Option Care Health, Inc. Common Stock（OPCH）WACC：6.93%

WACC计算器

Option Care Health, Inc. Common Stock（OPCH） WACC 解读

OPCH 公司分析

OPCH DCF 估值

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