GDRX WACC - Weighted Average Cost of Capital
The WACC of Goodrx Holdings Inc (GDRX) is 8.0%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.1% | 8.05% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.9% - 15.6% | 10.75% |
| WACC | 6.3% - 9.7% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.68 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.32 | 0.32 |
| Cost of debt | 5.9% | 15.6% |
| After-tax WACC | 6.3% | 9.7% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GDRX | Goodrx Holdings Inc | 0.32 | 0.67 | 0.54 |
| 6819.HK | Intellicentrics Global Holdings Ltd | 0.13 | 0.04 | 0.03 |
| CERN | Cerner Corp | 0.07 | 0.76 | 0.73 |
| CHNG | Change Healthcare Inc | 0.51 | 0.92 | 0.67 |
| INOV | Inovalon Holdings Inc | 0.14 | 0.51 | 0.46 |
| MPLN | Multiplan Corp | 12.06 | 2.05 | 0.21 |
| OMCL | Omnicell Inc | 0.28 | -0.02 | -0.01 |
| TDOC | Teladoc Health Inc | 1.24 | 0.98 | 0.52 |
| Low | High | |
| Unlevered beta | 0.41 | 0.52 |
| Relevered beta | 0.52 | 0.64 |
| Adjusted relevered beta | 0.68 | 0.76 |
GDRX'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 GDRX:
cost_of_equity (8.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.68) + 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.