BSX
Boston Scientific Corp
Price:  
104.12 
USD
Volume:  
5,174,182.00
United States | Health Care Equipment & Supplies
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BSX WACC - Weighted Average Cost of Capital

The WACC of Boston Scientific Corp (BSX) is 6.7%.

The Cost of Equity of Boston Scientific Corp (BSX) is 6.90%.
The Cost of Debt of Boston Scientific Corp (BSX) is 4.25%.

Range Selected
Cost of equity 6.10% - 7.70% 6.90%
Tax rate 12.80% - 19.40% 16.10%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.9% - 7.5% 6.7%
WACC

BSX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.48 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 7.70%
Tax rate 12.80% 19.40%
Debt/Equity ratio 0.07 0.07
Cost of debt 4.00% 4.50%
After-tax WACC 5.9% 7.5%
Selected WACC 6.7%

BSX's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for BSX:

cost_of_equity (6.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.