Question 1

What is SELECT MEDICAL HOLDINGS CORP's WACC?

Accepted Answer

SELECT MEDICAL HOLDINGS CORP (SEM) has a Weighted Average Cost of Capital (WACC) of 6.93%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 6.54%, with an equity weight of 52.97% in the capital structure.

Question 2

Is SELECT MEDICAL HOLDINGS CORP's WACC high or low?

Accepted Answer

SELECT MEDICAL HOLDINGS CORP'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 SELECT MEDICAL HOLDINGS CORP's WACC calculated?

Accepted Answer

SELECT MEDICAL HOLDINGS CORP's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.49% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 6.54%. The capital structure is 52.97% equity and 47.03% debt.

SELECT MEDICAL HOLDINGS CORP (SEM) — WACC 分析

WACC 构成

解读

SELECT MEDICAL HOLDINGS CORP（SEM）WACC：6.93%

WACC计算器

SELECT MEDICAL HOLDINGS CORP（SEM） WACC 解读

SEM 公司分析

SEM DCF 估值

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