FCHS
First Choice Healthcare Solutions Inc
Price:  
0.01 
USD
Volume:  
3,390.00
United States | Health Care Providers & Services
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FCHS WACC - Weighted Average Cost of Capital

The WACC of First Choice Healthcare Solutions Inc (FCHS) is 4.9%.

The Cost of Equity of First Choice Healthcare Solutions Inc (FCHS) is 135.95%.
The Cost of Debt of First Choice Healthcare Solutions Inc (FCHS) is 5.00%.

Range Selected
Cost of equity 75.40% - 196.50% 135.95%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.4% - 5.5% 4.9%
WACC

FCHS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 15.56 34.23
Additional risk adjustments 0.0% 0.5%
Cost of equity 75.40% 196.50%
Tax rate 26.20% 27.00%
Debt/Equity ratio 103.84 103.84
Cost of debt 5.00% 5.00%
After-tax WACC 4.4% 5.5%
Selected WACC 4.9%

FCHS'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 FCHS:

cost_of_equity (135.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (15.56) + 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.