The WACC of Encompass Health Corp (EHC) is 7.8%.
Range | Selected | |
Cost of equity | 7.50% - 10.10% | 8.80% |
Tax rate | 20.90% - 21.40% | 21.15% |
Cost of debt | 5.10% - 5.30% | 5.20% |
WACC | 6.8% - 8.9% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.79 | 0.94 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.50% | 10.10% |
Tax rate | 20.90% | 21.40% |
Debt/Equity ratio | 0.26 | 0.26 |
Cost of debt | 5.10% | 5.30% |
After-tax WACC | 6.8% | 8.9% |
Selected WACC | 7.8% | |