Question 1

What is Universal Health Services, Inc. Class B's WACC?

Accepted Answer

Universal Health Services, Inc. Class B (UHS) has a Weighted Average Cost of Capital (WACC) of 6.30%. This is calculated using a Cost of Equity of 8.20% (via CAPM with a beta of 0.77) and a pre-tax Cost of Debt of 3.25%, with an equity weight of 66.26% in the capital structure.

Question 2

Is Universal Health Services, Inc. Class B's WACC high or low?

Accepted Answer

Universal Health Services, Inc. Class B's WACC of 6.30% 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 Universal Health Services, Inc. Class B's WACC calculated?

Accepted Answer

Universal Health Services, Inc. Class B's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.20% is derived from the CAPM model using a beta of 0.77. The pre-tax Cost of Debt (Rd) is 3.25%. The capital structure is 66.26% equity and 33.74% debt.

Universal Health Services, Inc. Class B (UHS) — WACC 分析

WACC 构成

解读

Universal Health Services, Inc. Class B（UHS）WACC：6.30%

WACC计算器

Universal Health Services, Inc. Class B（UHS） WACC 解读

UHS 公司分析

UHS DCF 估值

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